Banking index raises stock market by N1.08tn

Despite investors’ sentiment trading and uncertainty surrounding the 2023 general elections, the anticipation for dividend payout and sectoral performance of the NGX bank index raised the stock market capitalisation by N1.08tn in January.

The stock market in 2022 recorded foreign investors’ apathy due to the scarcity of foreign exchange, double-digit inflation rate, and hike in the Monetary Policy Rate to 16.5 per cent.

The market capitalisation of all listed stock on the Nigerian Exchange closed trading at N28.998tn on January 31, 2023, an increase of N1.08tn from N27.915tn it closed for trading in 2022.

Also, the NGX the All-Share Index rose by 3.88 per cent or 1,987.61 basis points to 53,238.67 basis points, 1,987.61bps or 3.88 per cent from 51,251.06 basis points it closed for trading in 2022

This performance was boosted by NGX Banking Index appreciated by 7.5 per cent to 448.85basis points from 417.50 basis points it closed in 2022, while NGX Insurance rose by 5.4 per cent to 183.71basis points as of January 31, 2023, from 174.36 basis points it closed last year.

As the NGX Consumer Goods Index close January 31, 2023 at 622.15 basis points, up by 5.64 per cent from 588.93basis points, NGX Oil & Gas Index rose by 5.4 per cent to 487.51 basis points from 462.48 basis points it closed in 2022.

Capital market analysts said the market so far in 2023, had witnessed sentiment trading by investors, stressing that anticipated dividend payment contributed to the 2.74 per cent growth in the month under review.


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