Gains of N16.388 trillion were registered by the Nigerian Exchange Limited (NGX) between June and August 31.
The shift occurred as NGX trailed the Ghana Stock Exchange to become Africa’s second-best exchange market in terms of performance during the previous three months.
The market capitalisation of NGX increased from N20,034 trillion at the beginning of June to N36,422 trillion on August 31, according to a performance breakdown.
According to African Markets, a website that monitors the performance of African exchanges, the Ghana Stock Exchange recorded +22.84 percent to take first place. Malawi came in second with a +15.79% increase, followed by the NGX, which had a +19.33% increase.
The market capitalization increased by N1.41 trillion during the trading month of August from its opening value of N35.011 trillion to its closing value of N36.422 trillion. On the other hand, the broad index known as the ASI, which is used to gauge the performance of Nigerian stocks, started trading on August 3 of 2023 at 64,337.52 index points and ended it on August 31 at 66,548.99 points, a gain of 2,211.47 basis points or 3.44 percent.
Giving context to the situation, Cordros Research stated that the resiliency of the stock market was a reflection of increased investor confidence in domestic growth as a result of the new administration’s adoption of long-needed reforms.
The growth is occurring despite Nigeria’s alarmingly high inflation rate, which was 24.08 percent, 18.75 percent growing interest rates, and the foreign exchange rate issue brought on by the Naira’s floating, which caused the Naira to exchange at N780 to the dollar.
