Nigerian equities defy global decline as investors gain N1.94trn in January

By Chinwendu Obienyi

Despite the negative sentiments in global stock markets, Nigeria’s stock market finished the trading month of January 2022 in the green territory as investors pocketed a gain of N1.94 trillion.

The positive performance of the market was contrary to the negative performance of the major advanced and emerging global stock markets. 

For instance, In the United States of America, the twin indices- the Dow Jones Industrial Average (DJIA) and S & P 500 declined by 0.3 per cent and 1.6 per cent last week while the STOXX Europe-which broadly measures the larger European markets, depreciated by 0.9 per cent. 

Furthermore, In Asia, Japanese’s Nikkei 225 Index dipped by 2.9 per cent while Chinese’s SSE Index posted negative return of -4.6 per cent. The MSCI EM Index-which tracks emerging markets dropped by -4.2 per cent while the MSCI FM Index- which tracks frontier markets, slipped by 1.6 per cent. 

However, United Kingdom’s FTSE 100 Index appreciated by 0.8 per cent while Nigeria’s equities market Index closed the trading month at 0.91 per cent, hence, resulting in 9.2 per cent Year-to-Date (YTD) gain.

Specifically, the All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX) Limited, rose from the month under review opening index of 42,716.44 points, closed at 46,624.67 points.

On the other hand, market capitalization which is the aggregate market value of all quoted equities at the NGX, grew by N1.94 trillion to N25.124 trillion as at January 31, 2022 from N23.188 trillion as at January 4, 2022.

According to analysts, the positive performance recorded was due to the listing of BUA Foods Plc, Airtel Africa’s performance, investors taking advantage of some low priced stocks as well as the ongoing impressive corporate earnings.