The Nigerian stock market appears not to be responding to global stimulus as rising inflation and the hawkish stance of monetary authorities in developed markets stifle performance in January and Nigeria’s performance index rising steeply.
Analysts say, with the performance of the Nigerian bourse, it seems unaffected by global happenings.
But John Oko thinks differently. According to him, the fact that, foreign shareholding is diminished in recent times seem to have isolated the Nigerian market from lobar shocks.
According to Afrinvest analysts, performance in the global equities space began the year with the bears regaining dominance as the MSCI World index recorded a 5.3 per cent loss in January. The bearish outing stretched across the globe, driven mainly by the rise in inflation and global systemic central banks’ pivoting to a hawkish stance.
But the situation is different as the domestic market ended January on a positive note. The Nigerian Exchange (NGX) All-Share Index rose 9.1 per cent month-on-montj(m/m) to settle at 46,624.67 points amid the flurry of impressive earnings by major bellwethers and positive corporate actions.
Consequently, Year-to-Date (YTD) return printed at 10.7 per cent. Interestingly, out of 20 trading days in the month, the domestic bourse recorded gains on 14 days and lost in the other 6 days. Total volume and value traded in January grossed 5.4 billion units and N76.6 billion respectively.
Also, concerns surrounding the Russia-Ukraine conflict, United Arab Emirates drone attack, and OPEC+ underproduction stimulated bullish sentiment in the oil market. As such, oil prices climbed 14.8 per cent m/m to close at $89.26/bbl. Meanwhile, Nigeria’s external reserves shed 1.2 per cent m/m to close January at $40.0bn.
