Nigerian exchange sees N1.06 trillion growth with FCMB and LASACO listings
The Nigerian Exchange, NGX, experienced significant growth of N1.06 trillion due to the listing of supplementary offers by FCMB Group and LASACO Plc on the local bourse. This growth marked a positive start to the year, with the All-Share Index (ASI) closing January with a 1.53% gain, reaching 104,496.12 points.
The influx of corporate earnings reports played a crucial role in boosting bargain hunting and investor confidence. The impressive numbers reported raised expectations for attractive dividend payouts, contributing to the positive momentum observed in the market. Stockbrokers noted that this resilience demonstrated the strength of the local bourse, with stock market capitalization increasing by 1.67% to N64.71 trillion by the end of the week.
The supplementary listings of ordinary shares by LASACO Assurance Plc and FCMB Group Plc provided further support to the market, resulting in a significant increase of N1.06 trillion in investor wealth. This additional boost, combined with the positive market sentiment, contributed to the year-to-date return settling at 1.53%, reflecting sustained confidence in Nigerian stocks.
Several stocks stood out as top performers during the week, with notable price gains recorded. CHELLERAMS led the charge with an impressive 60.4% surge, followed by VITAFOAM, which saw a 31.5% increase in its stock price. BETAGLASS and NNFM also posted gains of 21%, while SKYAVN soared by 20.7%, as investors strategically positioned themselves in anticipation of continued earnings growth.
On the flip side, some stocks witnessed significant sell-offs during the week. VERITASKAP experienced a notable decline of 29.7%, emerging as the worst-performing stock, while MRS suffered a 19% decrease in its stock price. Despite these fluctuations, the overall performance of the Nigerian Exchange remained positive, with investors showing confidence in the market.
The favourable investment climate, coupled with the listing of supplementary offers by key companies, has set a solid foundation for further growth and development in the Nigerian capital markets. The resilience and performance of the local bourse indicate promising opportunities for both domestic and foreign investors looking to capitalize on the potential of the Nigerian economy.