In terms of year-to-date returns on the Nigerian Exchange Limited, the Growth Board and Oil & Gas have emerged as the top-performing indexes as of Christmas.
Other indexes that have recorded impressive returns are the banking index, NGX-AFR Bank Value Index (106.47 per cent), NGX AFR Div Yield Index (122.78 per cent) and NGX MERI Value Index (123.63 per cent). The year-to-date returns on all of these indexes were above 100 per cent, according to the weekly market report from the NGX.
The growth board, which according to the exchange is meant to encourage small-cap and growth-oriented companies to leverage the capital market to raise long-term capital, stimulate growth, and promote liquidity, recorded a YTD of 249.10 per cent as of Friday.
Some of the companies listed on the growth board include Chellarams Plc, which has a market cap of N3bn, Ronchess Global Resources (7.371bn in market cap), McNichols Plc (N725m market value), Living Trust Mortgage Bank Plc, N14.900bn market cap, newly listed Mecure Industries Plc with a market capitalisation valued at N48bn, Briclinks Africa Plc valued at N62.50m and The Initiates Plc which has a market cap of N961m.
The positive trend was on the back of the general positive activities in the market. At the NGX Made of Africa Awards, the Chief Executive Officer of the Exchange, Temi Popoola, confirmed that the local bourse has had a good year.
Popoola said, “I think it has been a good year for us in the market when you look at a few metrics. This year, the market is up about 40 per cent. If you look at that versus other exchanges globally, that has been quite good.
“Some people may say that in dollar terms, the returns are not quite as strong, but the reality is that a lot of the capital that was in our market this year was local capital. Foreign investors left our market and pension funds are the big investors. I say to people, if my pension fund administrator this year can return 30 per cent, I don’t even need a 40 per cent return from NGX, I’d be a very happy person. I think we have done very well this year.”
Another index that has done well so far this year is the NGX Oil & Gas Index, which had a year-to-date gain of 124.71 per cent.
Analysis of market activity revealed that the NGX Oil & Gas index had risen to 1,039.25 basis points as of Friday, from 462.48 points as of the last trading day in 2022. This is an increase of about 576.763 during the year.
The performance of the NGX Oil & Gas index was boosted by investors’ reaction to the removal of fuel subsidy which led to a significant increase in the price of fuel across the country and positively impacted the share prices of companies in the Oil & gas sector.
Conoil Plc, which is listed on the index, has a YTD return of 216.60 per cent and closed trading on Friday at N83.90 per unit. It has reached a year high of N112.50 and a low of N26.50 per unit. Eterna Oil has a YTD gain of 79.13 per cent, and MRS Oil has recorded a YTD of 644.86 per cent with a year high of N109.95 per share and a low of N14.10. It closed the last trading session priced at N105 per unit.
Other stocks like Oando Plc recorded a YTD gain of 175.51 per cent, and TotalEnergies Marketing Nigeria had 99.48 per cent in terms of YTD gain.
Other indexes that performed well on the exchange include the Banking Index with a 112.60 per cent YTD gain, the Pension Index had 77.83 per cent returns, the Insurance index recorded 70.52 per cent, the consumer goods index recorded 70.62 per cent.
Conversely, the Alternative Securities Market index recorded a negative return of 3.01 per cent and the sovereign bond index also had a negative year-to-date return of 9.18 per cent.
