The Nigerian stock market has started the year 2024 on a positive note, gaining N1.512 trillion in the first two trading days. The All-Share Index increased by 3.70% from the opening level of 74,773.77 points to close at 77,537.57 points on January 3, 2024. Market capitalization also rose by N1.512 trillion to reach N42.430 trillion from the N40.918 trillion at the start of the year.
Market analysts attributed the positive trend to the carryover of the bullish and Santa Claus rally into the new year. Additionally, anticipation of the unaudited fourth-quarter financial results of listed companies and the first Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting for the year contributed to the positive sentiment.
Afrinvest Limited expressed expectations for an extended rally, stating, “Tomorrow, we anticipate an extended rally on the bourse, as investors continue to bet on a favorable equities outlook for the year.”
Ambrose Omordion, the Chief Operating Officer of InvestData Consulting Limited, noted, “We expect positive sentiment and trend to continue after breaking out 75,000 psychological line heading to 76,000 marks on positioning by bargain hunters ahead of unaudited Q4, 2023 numbers and volatility in the face of the coming MPC meeting.”
Reviewing market activities, gains were observed in medium and large-capitalized stocks such as Presco, Conoil, BUA Foods, Stanbic IBTC Holding, and FBN Holdings. The positive market breadth reflected a sentiment of 72 stocks gaining relative to seven losers.
Top gainers included Berger Paints, Dangote Sugar Refinery, Cornerstone Insurance, Custodian Investment, FCMB Group, and others. Conversely, Learn Africa led the losers’ chart.
The total volume traded increased by 79.83% to 927.558 million units, valued at N10.691 billion, exchanged in 11,629 deals. The market outlook remains positive, and investors are advised to leverage potential price corrections.