NGX-ASeM Index emerges best-performing index in H1’2024 with a gain of 135.25%

The NGX Alternative Securities Market (ASeM) Index exhibited exceptional performance, recording an impressive surge of 135.25% to emerge as the best-performing index during the first half of the year.

This is despite the backdrop of escalating inflation, prospective interest rate adjustments, and volatile exchange rates, investor confidence has displayed remarkable steadfastness.

This unwavering assurance has, in turn, spurred heightened market activity and intensified buying engagements.

NGX Industrial Goods Index, followed with a growth of 73.14% YtD to close H1, 2024 at 4,696.04 basis points.

The NGX Consumer Goods Index also rose by 41.05% YTD to close on June 28, 2024, at 1,581.55 basis points. NGX Oil/Gas Index appreciated by 38.12% to finish the half-year at 1,440.67 basis points.

The year-to-date (YTD) return of the NGX All-Share Index shows its resilience, standing at an impressive 33.81% despite recent bearish trends seen in Q2 of the year.

However, the equities market recorded mixed performances in the first two quarters of 2024 which made up the first half of the year.

The first quarter saw an impressive return of 39.84%, driven by strong company earnings, positive dividend announcements and also propelled by the listing of Transcorp Power Plc, a subsidiary of Transcorp Plc on the NGX.

The company listed 7.5 billion shares at N240.00 per share by introduction on the Main Board of the Nigerian Exchange (NGX).

The power generation company’s listing boosted the overall NGX market capitalization by N1.8 trillion, just as its shares rose by 10% on the first trading day.

The market positive sentiment among investors during the quarter was also attributed to several factors, including favourable policies introduced by President Bola Tinubu’s administration such as the removal of fuel subsidies, streamlining of exchange rates and the floating of the naira.

By contrast, the second quarter experienced a decline, with returns falling to -4.31% as of the close of the last trading day of June 28th.

The sharp drop in the index was influenced by several policy announcements from the Central Bank of Nigeria (CBN). Notably, the CBN announced a new recapitalization plan for commercial banks, aiming to raise an estimated N4 trillion in fresh capital over the next two years.

The downturn was largely attributed to the higher interest rate environment, which has driven investors towards fixed-income securities, putting downward pressure on market performance.

Market performance

• Consequently, available statistics to the Nairametrics showed that the All-Share Index, which is the broad index that measures the performance of Nigerian stocks, opened the trading first half of the year at 74,773.77 index points at the beginning of trading on January 2, 2024, and closed at 100,057.49 points at the end the month on June 28, 2024, gaining 25,283.72 basis points or 33.81%.
• Further analysis revealed that activities on the Nigerian Exchange Limited (NGX) which opened the trading of the first half of the year at N40.917 trillion in market capitalization at the beginning of trading, closed the H1’2024 at N56.601 trillion, hence has earned a month-to-date gain of about N15.684 trillion.

ASeM Index performance

• As per data sourced from the Nigerian Exchange Limited and tracked by Nairametrics, standing out prominently among all other indices, the NGX Alternative Securities Market (ASeM) Index, surged by an impressive 135.25% or 865 basis points.
• It concluded the quarter at 1,504.55 index points, a significant ascent from the opening index of 639.55 at the commencement of January 2024.