…Investors gain N2.98trn in 4 days
The Nigerian stock market has entered a new era of unprecedented growth as the All-Share Index (ASI) surged past the 170,000-points threshold, marking a historic milestone for the Lagos bourse.
From a low of 165,370.40 points and N106.153 trillion as at Friday January 30, the stock market’s Index and capitalisation rose to 170,005.36 points and N109.129 trillion at the close of trading on Thursday.
Driven by a combination of robust corporate earnings, a flurry of activity in the oil and gas sector, and sustained interest from institutional investors, the market continues to defy global inflationary trends.
This breakthrough on Thursday not only reflects a deepening of investor confidence in the local economy but also sets a new psychological floor for the market. This week, investors have booked about N2.98 trillion gain as the market rallied by 2.80 percent.
“This isn’t a bubble,” one veteran broker said. This is the sound of a market growing into its true potential. We used to look at 100,000 points as a dream. Now, it’s just a rearview mirror,” he added, while noting that the bull run wasn’t just intensifying; it was becoming the new normal.
The ASI’s leap above 170,000 points was driven by investors who bought stocks like Seplat Energy Plc which among others caused the 1.18percent rally on the Nigerian Exchange Limited on Thursday. Seplat share price rose by 10percent or N670, from N6,700 to N7,370.
For months, the Nigerian Exchange has been a pressure cooker of ambition. Ever since the market capitalisation crossed the N100 trillion mark in January, the 170,000-point All-Share Index had become the “Great North Wall” of Nigerian finance.
Analysts had spent weeks debating if the momentum could last, but by 2:30 pm on Thursday, the ticker tape provided the final, undeniable answer. As the bull run gains momentum, market watchers are keeping a close watch on whether this enthusiasm will transform into a permanent structural shift for Nigerian equities.
Culled From BusinessDay