Despite the compounding damage from the COVID-19 pandemic and the Russian invasion of Ukraine, which slowed down the global economy, Nigeria’s capital market activities ended positively in the first half (H1) of 2022 as both local and foreign investors on the Nigerian Exchange Limited (NGX) gained about N3 trillion.
According to data obtained from NGX, the All-Share Index (ASI) which opened the year at 46,624.67 points appreciated by 11.14% to 51,817.59 points as at June 30, 2022, while market capitalization grew by N2.81 trillion to N27.940 trillion from the year’s opening figure of N25.130 trillion.
However, the volume of stocks traded declined by 19.03% from N7.37 billion shares to N5.96 billion shares while the value of stocks traded in the period under review fell to N78.46 billion from N161.73 billion, representing a 51.5% decrease.
Transactional analysis
Analysis of the data revealed the deals on the local bourse grew by 9.32% from 88,257 deals in January 2022 to 96,480 deals. The top price gainers in H1 2022 include; Meyer, Academy, Guinness, NAHCO and RT Briscoe with 447.83%, 154%, 132.05%, 127.27% and 120% respectively.
Further analysis showed that the value of fixed income traded rose by 84.81% to 348,602.00 from 188.623.00 in January 2022 while the value of fixed income traded moved from 190.97 to 356.844 representing an 86.86% rise.
In addition, the market capitalisation of fixed income moved from N21.42 trillion to N22.231 trillion in June 2022.
What analysts are saying
- Reacting to the performance of the market, the Managing Director of APT Securities and Funds Ltd, Mallam Garba Kurfi said available data for the half year showed a 61% increase in the total NGX market turnover and 21.31% gain in ASI compared to the same period of the previous year.
- “Among the factors that contributed to this performance is that most of the major capitalised stocks, that is, Airtel Africa, MTNN, Dangote Cement and BUA CEMENT, which control over 70% of the total market capitalisation gained about 50% during the period under review and qualified to be Invest by PFAs, which they did,” Kurfi said.
- Also speaking on the gain in the market, the Managing Director of ARM Securities Ltd, Rotimi Olubi, said the improved participation by local investors in the market and the strong earnings result from some quoted companies buoyed investor sentiment in H1 2022.
- “The performance of the capital market has been impressive in H1 2022. The equities market recorded stellar performance in the first half of the year crossing 50,000 points (highest since 2008) in the 18th week and 54,000 points at the end of the 21st week. We allude to this strong performance to decent earnings released by firms, especially in the industrial sector, (Dangote Cement, Lafarge Cement and BUA Cement), telecommunications sector (MTNN and Airtel Africa) and consumer goods and staples (Guinness, Cadbury and International Breweries, Dangote sugar) and the banking sector (GTBank, UBA, Accesscorp, Fidelity),” Olubi said.