Investors in the Nigerian stock market closed weekend with net capital gain of about N27 trillion as increase in investment flows from foreign and domestic investors continued to drive demand for Nigerian equities.
Trading data at the Nigerian Exchange (NGX) showed that notable increases in share prices across many sectors saw the market with a net weekly gain of N2.16 trillion at the weekend, pushing average return so far this year to N26.87 trillion.
The average year-to-date return of N26.87 trillion already represented an increase of N11.46 trillion on net capital gain of N15.41 trillion recorded for the whole of 2024.
The benchmark index for the Nigerian stock market, the All Share Index (ASI) of the NGX, stands at 42.81 per cent, implying that an average investor in Nigerian equities has so far seen a 42.81 per cent increase on his portfolio. The ASI had recorded a full-year return of 37.65 per cent in 2024.
At 42.81 per cent, Nigeria currently ranks among world’s five best-performing stock markets, in terms of returns.
The ASI closed weekend at 146,988.04 points, about 44,062 basis points above 102,926.40 points recorded as opening index for this year.
Aggregate market value of all quoted equities, which opened this year at N62.763 trillion, closed weekend at N93.296 trillion, representing an increase of 48.65 per cent or N30.53 trillion.
The difference between the ASI’s return and market value was due to unadjusted values from additional listings. The ASI is generally regarded as the benchmark return for the stock market. It doubles as Nigeria’s sovereign index in the global markets.
A global review at the weekend showed that average returns at the Nigerian market surpassed returns in advanced markets of Americas and Europe. For instance, average returns in the United Kingdom and the United States of America stood at about 15 per cent while returns across the BRICS, excluding South Africa, were generally below 20 per cent.
Market analysts have attributed the bullish performance of the Nigerian market to substantial increase in foreign portfolio investments (FPIs) and sustained demand from local investors.
