Nigerian equities market may have been the most bullish, gaining a whopping N14.4 trillion in the first month of 2024.
The All Share Index (ASI) also rose 35.3 per cent during the period.
“In the first month of the year, the NGX sustained the 2023 bullish momentum with a m/m gain of 35.3 per cent to 101,154.13 points as investors showed enthusiasm ahead of earnings season. As such, Year-to-Date (YTD) return printed at 35.3% while market capitalisation advanced N14.4 trillion to N55.4 trillion”, said analysts at Afrinvest.
Monthly trading activity surged as average volume and value traded rose 98.2 per cent and 67.1% m/m to 875.9 million units and N14.8 billion, respectively. TRANSCORP (1.6 billion units), UBA (1.2 billion units), and ACCESSCORP (985.8 million units) were the top traded stocks by volume for the month, while DANGCEM (N62.8 billion), UBA (N35.0 billion), and ACCESSCORP (N27.9 billion) led by value.
At the foreign exchange market:, the naira experience a downward trend across segment.
But global crude oil price rose in January with benchmark Brent experiencing a 4.4 per cent m/m increase to $80.55/bbl., with ongoing geopolitical tensions being majorly responsible for surge in oil price. However, traders would remain cautious ahead of OPEC+ meeting in March, given the US Feds decision to hold rates steady at its recent FOMC meeting.
On the domestic scene, CBN foreign reserves gained 1.5% m/m in January to close at US$33.4bn. The accretion in reserves might not be unconnected to inflows of about $3.3bn from the Afrexim bank crude-oil-tied support facility…
In the money market, selloffs dominate the secondary market
In January, average system liquidity improved by 95.1 per cent to close at N261.3 billion following a series of standing lending facility amounting to N3.5 trillion and primary market repayment worth N578.0 billion.
Meanwhile, the OPR and OVN rates surged by 4.3ppts and 4.9ppts to print at 19.4% and 20.4%.
