Nigeria Stocks Hit Record High, Rising 1.68% in First Trading Session of 2024

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In a bullish start to 2024, Nigerian stocks surged by 1.68% during the first trading session, setting a new all-time high at 76,031 points, as per LSEG data. This uptrend follows a remarkable 45.90% climb in 2023, reflecting a robust rally fueled by local investors countering inflation and surplus cash from low bond yields.

Key Points:

  • Historic Milestone: The stock index reached an unprecedented 76,031 points, breaking past the 70,000-point mark reached in November.
  • Rally Drivers: Nigeria’s equities gained momentum in 2023, sparked by President Bola Tinubu’s reforms in the foreign exchange market and the removal of a costly fuel subsidy.
  • Investor Confidence: Local investors flocked to stocks to combat rising inflation and capitalize on excess money in money markets due to low bond yields.
  • Market Resilience: Despite global uncertainties, Nigerian stocks showcase resilience, continuing their upward trajectory in the new year.
  • Government Reforms: The government’s strategic measures, including foreign exchange reforms, played a pivotal role in boosting investor confidence and fostering a positive market sentiment.

Nigerian stocks’ impressive performance in the first trading session of 2024 reaffirms the resilience of the market and the impact of strategic government reforms. With a record-breaking high, the stock index reflects not only the confidence of local investors but also the effectiveness of policy measures in navigating economic challenges. As the year unfolds, market participants will be closely monitoring how these positive trends continue to shape Nigeria’s financial landscape.

Reuters

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