Nigeria’s equity trading on the Nigerian Exchange Limited (NGX) ended the first half of 2023 positively, as the NGX All-Share Index recorded an impressive gain of 18.9%, reaching a closing value of 60,968.27 index points.
This achievement marks a significant milestone for the stock market, with the index soaring to its highest level in 15 years since March 5, 2008, when it stood at 66,381.20 points.
In June, the All-Share Index experienced a notable increase of 9.32%, breaking a four-year pattern of losses this month. This significant surge represents the best monthly performance for Nigeria’s stock market in approximately two and a half years.
Despite prevailing concerns such as rising inflation, potential interest rate hikes, and anticipation surrounding the aftermath of the 2023 general elections, investor confidence remained steadfast, resulting in increased buying activity.
The positive sentiment observed among investors can be attributed to several factors, including the smooth transition of power following the 2023 elections. Additionally, the favourable policies introduced by President Bola Tinubu’s new administration, such as the removal of fuel subsidies, exchange rate adjustments, and the floating of the naira, have been positively received.
Investors also viewed President Bola Tinubu’s decision to suspend Central Bank Governor Godwin Emefiele, who had implemented restrictive policies affecting their profits, favourably.