Investors in Nigerian equities rallied net capital gains of about N1.240 trillion in the year 2020, despite volatility witnessed in the market, LEADERSHIP learnt.
The key performance indicator of the Nigerian Exchange (NGX) Limited, the All-Share Index (ASI), went up by 6.07 per cent to close the year 2021 at 42,716.44 points from 40,270.72 points at which it opened trading for the year. Similarly, market capitalisation for the period gained by N1.240 trillion to N22.297 trillion from N21.057 trillion.
Recall that the domestic stock market was generally bearish in the first half of the year as investors shifted base to the fixed income space given the significant rise in rates; thus, taking advantage of the uptrend in relatively less risky interest rates.
Performance across the major sectoral indices was positive during the period as at December 31, 2021, with the NGX Oil & Gas index leading with 52.52 per cent gain. NGX Premium index followed with a gain of 20.08 per cent, while NGX Pension index up by 16.96 per cent.
NGX Lotus II, NGX 30, NGX Insurance, NGX Banking and NGX Consumer Goods indices closed the year in a positive territory with a gain of 5.74 per cent, 5.01 per cent, 4.54 per cent, 3.32 per cent and 2.78 per cent, respectively. On the other hand, NGX Industrial Goods index declined by 2.15 per cent in the period under review.
Also, during the year, the NGX recorded three new listings and five supplementary listings which added to the market capitalization of the bourse. Noteworthy was the listing of the Nigerian Exchange Group following the demutualization of the Nigerian Stock Exchange now known as Nigerian Exchange (NGX), while Ronchess Global Resources Plc and Bricklinks Africa listed on the NGX.
Capital market analysts noted that total equities market transactions moderated in 2021 compared to the value of transactions executed in the corresponding period of 2020. The decline in total transaction was chiefly due to the weak appetite of foreign portfolio investors (FPIs) amid fears of foreign exchange volatility eroding their returns on investment.
They however said, local investors dominate the equities market as they accumulated more shares to take position in some fundamentally sound stocks following the release of corporates’ nine months financial results which were largely positive.
Reviewing the equities space in 2021, Cowry Assets Management Limited said: “the domestic stock market was generally bearish in the first half of the year as investors shifted base to […]