NGX Soars to Second Place in African Markets with Trillion-Naira Gains

In the period spanning from June to August 31, the Nigerian Exchange Limited (NGX) exhibited remarkable financial prowess, accumulating substantial gains amounting to 16.388 trillion Naira.

This financial achievement positions NGX as the second-best-performing exchange market across the African continent over the past three months, with the Ghana Stock Exchange taking the lead.

Analyzing the performance in detail, NGX’s market capitalization witnessed a substantial surge, commencing at N20,034 trillion at the onset of June and culminating at an impressive N36,422 trillion by the close of trading on August 31.

According to African Markets, a reputable platform that meticulously tracks the performance of African stock exchanges, the Ghana Stock Exchange soared to the top spot with a noteworthy increase of +22.84 per cent. In a comparative context, NGX achieved a commendable +19.33 per cent growth rate, securing its position as the second-best performer, followed by Malawi with a +15.79 per cent increase.

During the month of August, the market capitalization, which initiated trading at N35.011 trillion, wrapped up the month at N36.422 trillion, marking an impressive gain of N1.41 trillion.

Concurrently, the All-Share Index (ASI), a comprehensive benchmark measuring the performance of Nigerian stocks, commenced the trading month on August 3, 2023, with an index score of 64,337.52 points and concluded the month on August 31 at 66,548.99 points. This indicates a noteworthy increase of 2,211.47 basis points or 3.44 per cent within that period.

Offering insight into this development, Cordros Research underscored the equities market’s resilience, attributing it to heightened investor optimism driven by the new administration’s enactment of long-awaited policies aimed at fostering domestic growth.

Notably, these exceptional financial achievements occurred against the backdrop of Nigeria grappling with challenges such as a soaring inflation rate at 24.08 per cent, rising interest rates at 18.75 per cent, and a foreign exchange rate crisis stemming from the Naira’s fluctuation, resulting in an exchange rate of N780 against the US Dollar.