The Nigerian equities market experienced a remarkable surge on Monday, July 10, 2023, as investors capitalized on the recent market rally to gain N851bn. This event marked one of the highest one-day gains in 2023, with the All-Share Index and equities capitalization increasing by 2.48% from 63,040.41 points and N34.326tn to 64,603.69 points and N35.177tn, respectively. Here are three key highlights from the news:
NGX ASI Index Growth
The NGX ASI index is a value-based index that tracks all share prices at the Nigerian Stock Exchange (NGX). On January 3, 2023, the NGX ASI index opened at 51,251.06 points, but it settled at 64,603.69 points at the close of trading on Monday, July 10, 2023. This represented a 26% growth seen in just a few months.
Market Performance
The market’s performance was driven by continued demand in MTNN, Dangote Cement, and Stanbic IBTC. Across the market counters, the Industrial Goods (+5.13%), Insurance (+4.18%), Oil and Gas (+2.61%), and Banking (+1.73%) indices closed in the green while the Consumer Goods (-0.18%) index declined. Trading volume and value also surged by 49.80% and 59.11%, respectively, to 1.84 billion units and N22.033bn exchanged in 14,584 deals.
The Bullish Run
The current bullish run at the market has been described as dangerous by the Vice Chairman of the Board at Highcap Securities Ltd, David Adonri. He stated that the continued rally driven by sentiments is becoming scary, with no other sensitive information pushing the market. He warned that when investors start taking profits, there will be a serious dip, leading to panic.
The Nigerian equities market witnessed a significant surge on Monday, July 10, 2023, with the All-Share Index and equities capitalization experiencing a remarkable increase. However, the bullish run has been described as dangerous, and investors are advised to be cautious as a dip may follow anytime soon.
