In a stunning feat, NGX has secured its position as the world’s best-performing stock market in the first three weeks of 2024, capping off the trading day on January 19, 2024, at an impressive 94,538.12 points.
With a remarkable year-to-date return of 26.43%, the NGX has outshone its global counterparts.
Taking the second spot is the S&P Merval Index, reflecting the performance of the Argentine Stock Exchange (BYMA), with a year-to-date return of 26.37%.
Performance Snapshot of Global Stock Markets (as of 19/01/2024)
- The MSCI Emerging Markets EMEA Index, tracking stock markets across emerging markets in Europe, the Middle East, and Africa, has posted a negative year-to-date performance of -2.01%.
- The FTSE/JSE All Africa Share Index, monitoring the Johannesburg Stock Exchange, recorded a negative year-to-date return of -5.50%.
- The GSE Composite Index, reflecting the performance of stocks on the Ghanaian Stock Exchange, showed a positive year-to-date return of +0.77%.
- The S&P 500 Index, tracking the top 500 companies across US stock exchanges, reported a year-to-date performance of +2.04%.
- The FTSE UK All-Share Index, observing the stocks trading on the London Stock Exchange, exhibited a year-to-date return of -3.34%.
- The Nairobi Securities Exchange All-Share Index (NASI), monitoring the performance of the Nairobi Securities Exchange, recorded a year-to-date return of +1.37%.
Key Insights
In 2023, NGX showcased an outstanding performance as its All-Share Index appreciated by 45.90%, closing at 74,773.77 points.
Since the commencement of 2024, the market has witnessed a further appreciation of 19,764.35 points, reaching an All-Share Index of 94,538.12.
Equities in the market have surged by approximately N10.82 trillion in 2024, propelling the market cap of NGX to close at N51.74 trillion ($57.36 billion), up from N40.92 trillion ($45.11 billion) recorded at the end of 2023.
This stellar performance can be attributed to the robust performance of banking stocks, cement stocks, and other blue-chip stocks.
Year-to-date, Dangote Cement has recorded a remarkable return of +68.4%, BUA Cement with a +53.1% gain, BUA Foods at 24.1%, and Geregu Power Plc with a commendable 17.1% gain.
In the banking sector, standout performers include Wema Bank Plc, which has surged by 114% year-to-date, Unity Bank with an impressive YTD gain of 116%, Jaiz Bank at 77.8% YTD gain, and Sterling Bank with a YTD gain of 62.5%.
FUGAZ banks have also posted notable gains in 2024, with FBN Holdings posting a YTD gain of 13%, UBA with a YTD gain of 20.9%, GTCO Holdings at 8.89%, Access Holdings with a substantial YTD gain of 29.6%, and Zenith Bank reporting a YTD gain of 16.4%.
Furthermore, the number of companies with Stocks Worth Over N1 trillion (SWOOTs) has increased from eight at the end of 2023 to twelve.
In 2023, MTN Nigeria, Dangote Cement, Airtel Africa, BUA Foods, BUA Cement, Zenith Bank, GTCO Holdings, and Seplat Energy were in the SWOOT category. This year, Access Holdings, United Bank for Africa, Transcorp Hotels, and Geregu Power have joined the prestigious category.
Additionally, FBN Holdings and Dangote Sugar have crossed the N1 trillion market cap mark at various points in the year.
No one has so far been able to explain to us the reason for the rise in the Index.
It’s not a rise in our economic production or rise in our forex reserves. Even if it is the result of our inflation, the inflation rate is not as high.
The only sign I can see is a crash looming.