A total sum of N16.388 trillion gains was recorded by the Nigerian Exchange Limited (NGX) from June to August 31.
This comes as the Ghana Stock Exchange took the lead while the NGX trailed behind to emerge as Africa’s second-best-performing exchange market in the last three months.
A breakdown in performance shows that NGX’s market capitalization rose from N20,034 trillion at the beginning of June to N36,422 trillion on August 31.
According to African Markets, a website that tracks the performance of exchanges in Africa, the Ghana Stock Exchange recorded +22.84% to emerge the first. In comparison, the NGX recorded an increase of +19.33%, followed by Malawi, which recorded +15.79%.
The market capitalization increased by N1.41 trillion during the trading month of August from its opening value of N35.011 trillion to its closing value of N36.422 trillion. On the other hand, the broad index known as the ASI, which is used to gauge the performance of Nigerian stocks, started trading on August 3 of 2023 at 64,337.52 index points and ended it on August 31 at 66,548.99 points, a gain of 2,211.47 basis points or 3.44%.
Giving context to the situation, Cordros Research stated that the resiliency of the stock market was a reflection of increased investor confidence in domestic growth as a result of the new administration’s adoption of long-needed reform policies.
The new development is coming despite Nigeria’s alarmingly high inflation rate, which was 24.08%, 18.75% growing interest rates, and the foreign exchange rate issue brought on by the Naira floating, which caused the Naira to exchange at N780 to the dollar.
