TheCable

The Nigerian Exchange all-share index (ASI) has appreciated by 11 percent or 8,269 basis points year‐to-date, placing it second in the world behind Argentina.

The development comes as Nigerian equities surpassed their European, Middle Eastern, and African counterparts in 2024 — driven by pension funds and institutional investors anticipating record profits from lenders booking revaluation gains.

According to Bloomberg‘s report, compared with a less than 2 percent advance for the MSCI Emerging Markets (EMEA) Index over the same period, the NGX rose almost 60 percent in the past year.

Banking stocks have driven gains, with the banking index up 16 percent this year and 138.09 percent over the past 12 months.

So far in 2024, Access Holdings Plc is up 21 percent, while Zenith Bank Plc is up 11.3 percent, and Guaranty Trust Holding Company is up by 14.3 percent.

The report noted that negative real yields on the nation’s fixed-income securities have also made equities relatively more attractive in the country.

‘MAJOR TIER-1 BANKS JOIN TRILLIONAIRE CLUB’

In the present month, banks have sustained gains, with major tier-1 banks crossing the N1 trillion naira market capitalisation mark.

On January 9, 2024, Access Holdings had surpassed the N1 trillion market capitalisation mark.

The market capitalisation of the United Bank for Africa (UBA), on January 8, also hit N1.02 trillion, from the N990.07 billion traded on January 5, 2023.

Also on January 9, FBN Holdings closed trading with a N1.02 trillion market capitalisation, rising from N933.27 billion after its share value jumped from N26 (the previous day) to N28.6.

FBN Holdings had crossed the N1 trillion mark on December 6, 2023, for the first time, after recording N1.05 trillion market valuation from N960.19 billion.

However, the bank exited the trillionaire stock list the next day.