Nigerian Equities All Share Index Hits All-Time High of 65,669.29 Points
The Nigerian stock market has reached a significant milestone with the Nigerian Exchange All Share Index closing at an all-time high of 65,669.29 points on Tuesday, July 11th. This marks a new record in the history of the stock market, surpassing the previous high set 15 years ago in February 2008.
During the early 2000s, the stock market experienced a boom driven by various private placements, initial public offerings, and public offers. This led to a surge in capital inflows as investors took advantage of the wealth-driven retail investor market. However, the current bull run in the stock market is different from the one seen in 2008.
Unlike before, there are no margin lendings, public offerings, or retail investor frenzy. Despite the impressive performance of Nigerian equities, capital inflows are not expected to reach the same levels as in 2008. This can be attributed to various factors, including the absence of major public offerings and a more cautious investment environment.
Currently, Nigerian equities trade at a price-to-earnings multiple of 11.77x, which is higher than its emerging market peers such as South Africa, Egypt, Kenya, and Ghana. This indicates that Nigerian stocks are relatively more expensive compared to its regional counterparts.
On July 11th, the market capitalization of Nigerian equities increased by N580 billion, demonstrating the continued bullish trend in the market. However, the value of transactions experienced a significant decline, falling by 57.3% compared to the previous session.
Notable gainers in today’s trading session included CHELLARAM, OMATEK, and SOVRENINS, all of which saw a 10% increase in their share prices. The cement sector also performed well, with DANGOTE CEMENT and BUA CEMENT rising by 9.27% and 6.59% respectively.
Despite the positive market performance, leading banks closed with negative returns on this particular day. This indicates that while the stock market continues to soar, individual sectors and companies may experience varying outcomes.
It is worth mentioning that the overall performance of the stock market in July will determine whether the current bull run will result in an even higher All Share Index by the end of the month. Investors and analysts will closely monitor the market to gauge its future trajectory.
In conclusion, the Nigerian stock market has achieved a significant milestone by reaching an all-time high in its history. While comparisons with the previous peak in 2008 are inevitable, it is important to note the differences in the market dynamics and investor sentiment. As the month progresses, the market’s performance will provide valuable insights into the sustainability of this bull run.
