Stock market opens 2024 with N665b gains
They netted a capital gain of more than N665 billion amid optimism that early gains of major reforms will boost the economy during the year.
The transaction pattern in the first trading day of the year sustained the bullish momentum that saw investors earning N12.81 trillion as capital gains last year.
All benchmark indices at the stock market closed positive with intense bargain-hunting for stocks across the sectors.
Three of every four transactions were closed at premium, underlining a seller’s market where overwhelming demand pushes prices up.
Price changes at the Nigerian stock market is based on effective demand with price movement tied to minimum volume of shares and on-the-table, immediate order for the trading.
The average return yesterday stood at 1.63 per cent, equivalent to net capital gain of N665 billion.
The All Share Index (ASI) – the common value-based index that tracks all share prices at the Nigerian Exchange (NGX) rose from the year’s opening index of 74,773.77 points to close yesterday at 75,990.88 points.
Aggregate market value of all quoted equities rose simultaneously from the year’s opening value of N40.918 trillion to close yesterday at N41.583 trillion.
The Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe, who explained the pricing dynamics at the stock market, had noted that the market performance could only be interpreted that investors were reacting to the positive outlook for the economy.
He said: “Firstly, the stock market is a forward-pricing market, meaning that it tends to adjust for consequences of policy ahead of their impact being felt on the ground.
