In January 2024, the Nigerian Stock Exchange (NGX) did very well. The All-Share Index (ASI), which shows how the stock market is doing, went up by 35.28%. It ended the month at 101,154.46 points on January 31st.
This was the biggest increase for the NGX since at least January 2023.
It’s only three weeks into February, and we’re already up by 5%. That’s pretty impressive, especially since January was already good.
Experts say the recent strong performance of the NGX is because of the Naira losing value. The Naira lost almost half its value in 2023, and this has helped boost the stock market.
Smart investors who saw that the Naira was going to lose value took steps to protect their assets that are in Naira. This led to more money going into Nigerian stocks.
The simple explanation earlier might not include everything, but it gives a good idea of why the NGX did so well. Some experts were surprised, but many experienced professionals saw it coming.
In 2023, the NGX did better than the S&P 500, DJI, and FTSE 100 combined. Comparing the NGX’s performance in 2023 to other stock market indicators that year can show how big the rally was. The All-Share Index (ASI) started 2023 at 46,240.02 points and ended at 67,936.56 points, which is a 47.13% increase.
During that time, the S&P 500 went up by 25%, the DJI by 13%, and the FTSE 100 by 4%. Together, they went up by 43%, which is 5% less than the NGX ASI.
When we compare how the US and UK economies are growing to Nigeria’s, it doesn’t seem to match the big differences in how well the benchmarks are doing. The numbers suggest it should be a good time for companies to make more money, but things on the ground are quite different.
Is this rally something to be suspicious about? Some experts think so. They see the rally in the NGX market as strange because the economy as a whole isn’t doing well, yet some specific stocks are making really good profits.
Biggest winners so far in 2024
- Dangote Cement (DANGCEM): +139%
- Geregu Power Plc (GEREGU): +126%
- Bua Foods (BUAFOODS): 68.08%
- Japaul Gold and Ventures Plc (JAUGOLD): 64.7%
- Bua Cement (BUACEMENT):
- Transcorp Hotels Plc (TRANSCORP): +52.4%
How the Telecommunications sector is performing in 2024?
- Airtel Africa (AIRTELAFRI): +16.6%
- MTN Nigeria (MTN): +4.17%
- Globacom (GLO): 3.55%
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SWOOT and FUGAZ so far in 2024
SWOOT
- Seplat(SEPLAT): +45.9%
- Airtel Africa (AIRTELAFRI): +16.6%
- First Bank (FBNH):+18.9%
- Zenith Bank:-7.37%
- GTCO: -3.70%
- MTN Nigeria (MTN): +4.17%
- Dangote Cement (DANGCEM):
- If the stock market is still going up, can I still join and invest? Investing in stocks comes with risks. If you think the upward trend in the market will continue, here are ways you can join in.
- THINGS TO LOOK OUT FOR WHEN INVESTING
- Consider Expert Opinion: Consider opinion from experts like brokers, analysts and market technicians on the stock to invest in. Remember that investing comes with risks and the investing buck stops at your desk.
- Focus on Sectors: Instead of choosing individual stocks, you can research entire sectors that have done well and seem promising for the future. You might decide to invest in some of the top-performing stocks in those sectors.Listen to Experts: It’s a good idea to get advice from experts like brokers, analysts, and market technicians before investing. Just remember, investing always involves some risk, so be careful with your decisions.
