Nigerian Equities Market Ends 2022 With 19.98% Gain


The All Share Index has gained 19.98% in 2022 compared to 6.07% in 2021.

NewsBeatng reports that the All Share Index was positive year to date throughout 2022 for the first time since 2013.

It was gathered that on a month-to-month basis stocks gained 6 out of 12 months.

The Nigerian All Share Index also ended the year with 51,251,06 points.

The only other time it ended with over 50k points was in 2007.

Despite the rising inflation and interest rate hike, the nation’s equities market finished the year 2022 on a bullish run as the NGX All-Share Index appreciated by 19.98% to close the final trading day of the year on 30 December 2022 with 51.251.06 index points.

The Nigerian stock market ended the year 2022 on an impressive note, as investors increased their buying pressure, especially on blue-chip stocks. 

Stocks had gone on a monthly losing streak after posting negative returns every month from June to October 2022.

After getting to a record low in October, having suffered a massive price correction on Airtel in the month of October, positive sentiments had returned to the local bourse as investors rebalance their portfolio ahead of the year’s end. 

A hike in the Monetary Policy Rate (MPR) to 15.5% also saw investors in the stock market react negatively which led to the aggressive movement of investors to the fixed-income market.

Foreign investors had during the period also sold off Nigerian stocks with fear created by the build–up to 2023 general election tensions. 

With limited foreign investor participation and a lack of interest from retail investors, it appeared.

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Stocks posted losses for 5 months straight in the second half of the year before recovering in November and December with 8.72% and 7.5% gains respectively.

In contrast, stocks lost only in March and June in the first half of the year.

Earlier gains in the months of January (+9.1%) and gains in February, April and May helped boost year-end gains.

Data showed that the All-Share Index, which is the broad index that measures the performance of Nigerian stocks opened the trading year at 42.716.44 index point at the beginning of trading on January 4, 2022, closed the year at 51.251.06 points, gaining 8,534.64 basis points or 19.98%.

NGX Oil and Gas was the best performer gaining 34.60%, followed by NGX Industrial  with a gain of +19.67%.

The NSE 30 Index which comprises the most capitalised stocks ended the year with a single-digit return of 6.98%.

The banking and insurance index reported 2.81% and -11.99% respectively depicting the challenges of the financial services sector.

However, the pension index did well during the year with a return of 10.37%.

Further analysis revealed that activities on the Nigerian Exchange Limited (NGX) which opened the trading year at N22.296 trillion in market capitalisation at the beginning of trading on January 4, 2022, closed on December 3oth  2022 at N27.915 trillion, hence has earned a year to date gain of about N5.619 trillion.

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