Equities trading on the Nigerian Exchange Limited (NGX) ended the month of September 2024 on a strong note, buoyed by a surge in investor confidence in listed companies.
The renewed optimism led to a significant rise in buying activity, resulting in the market capitalization gaining N1.16trn and All-Share Index (ASI) increasing by two per cent to close at 98,558.79 points by the month’s end.
Despite several policy announcements from the Central Bank of Nigeria (CBN) aimed at curbing rising inflation, which market analysts feared could negatively impact stock performance, the ASI showed resilience.
According to data obtained by NewsNGR, the ASI began the month at 96,579.54 points and ended at 98,558.79 points, reflecting an increase of 1,979.25 basis points or 2 per cent.
The market capitalization also experienced growth, rising from N55.477trn at the beginning of September to N56.635trn by the end of the month, marking a gain of approximately N1.15trn.
However, financial analysts are forecasting a potential market correction in the second half of 2024, following the strong performance observed in the first half of the year.
Managing Director / CEO. Arthur Stevens Asset Management Limited and former CIS President Mr. Tunde Amolegbe have projected significant shifts in the capital market for the latter part of the year.
Amolegbe anticipates that the issuance of shares by banks, driven by the banking recapitalizations mandated by the Central Bank of Nigeria (CBN), will dominate the market.
“I believe the capital market in the second half of the year will be dominated by the issuance of shares by banks, in fulfilment of the banking recapitalizations mandated by the Central Bank of Nigeria (CBN). As a result, I expect primary market activities to take precedence over the secondary market,” Amolegbe stated.
He further noted that this trend could lead to a bearish market for the remainder of the year. Nonetheless, Amolegbe expressed confidence in the stability of the fixed-income market.
“I also anticipate that the fixed income market will remain stable, as the expectation is that the Monetary Policy Committee (MPC) might slow down its tightening stance with the slowing inflation rate,” he added.