The Nigerian Exchange Limited (NGX) closed 2023 on a high note, fueled by renewed investor confidence in listed companies as market operators brimming with optimism for a bullish and active primary market in 2024.
Market operators predicted that the primary market for equities may take centre stage in 2024 as several manufacturers whose balance sheets were wounded by the market reforms are also likely to access the Capital Market for funds in 2024.
CEO of Wyoming Capital and Partners, Tajudeen Olayinka, noted that his confidence could be drawn from the 2024 budget proposal of President Bola Ahmed Tinubu, where total reliance has been placed on the use of private capital in funding some important developmental projects across the country.
“I see a very bullish and active primary market in 2024, even though there could be occasional moderation in price movement across the board, as investors take profit and engage in portfolio rebalancing.
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Olayinka said the new leadership at NGX Group Plc and its subsidiary Trading Platform, NGX Exchange Limited, will further promote investors’ confidence, as the development is a product of a smooth and orderly transition, orchestrated by a good succession plan.
In his own submission, Executive Vice Chairman of Hicap Securities Limited, Mr. David Adonri Highcap said the macroeconomic situation remained depressing with galloping inflation which rose from 21.5 per cent in January 2023 to 28.2 per cent in November 2023.
Adonri noted that the GDP growth rate fell short of expectation ending in the third quarter of 2023 with 2.54 per cent, adding that the macroeconomic situation is expected to improve in 2024 as the economy readjusts to a new price level.
The President of the New Dimension Shareholders Association, Mr. Patrick Ajudua said going by the fact that the capital market is a barometer used in measuring the economic viability of any nation, noting that the shareholder expects that the coming online of 1st indigenous private refinery & resuscitation of Port Harcourt will result in an inflow of dollars and stability of the exchange rate.
“As we anticipated likely drop in inflation, stability of exchange rate resulting in more inflow of dollars, we expect that the government will clear all outstanding dollar remittance of investors which is put at $7 billion.”
The National Coordinator of the Independent Shareholders Association of Nigeria, (ISAN) Mr. Moses Ibrude said that the market has done well and that shareholders’ expectations for 2024 are that the performance will be sustained.
Ibrude appealed to the government to provide enabling business policies and strategies to improve the economic environment in general and the capital market in particular.
The NGX Exchange recorded a year-on-year increase of 45.90 per cent, marking the fourth consecutive annual gain as it closed at 74,773.77 index points.
Concurrently, the market capitalization experienced a noteworthy uptick of N13 trillion year-on-year, concluding at N40.92 trillion.