Despite the inflation rate being at an all-time high, and the looming economic uncertainties the country is facing, the Nigerian stock market seems to be telling a different story and defeating the odds.
The Nigerian All Share Index closed the first half of 2022 with a gain of about 21.17% year to date (YTD) and the market capitalization grew to about N27.935 trillion from N22.297 trillion (translating to about a 25% increase). Similarly, investors also recorded over N5 trillion in capital appreciation (assets were relocated from fixed income to equities). At the activity level, the number of shares that were traded rose to N223.11 million from N216 million, which is about a 3% increase. The value of shares also increased tremendously from about N1.5 billion to about N3.8 billion, which is over a 150% increase. The ASI (All Share Index) also advanced by 51,817.59 points, from 42,716.44 points at the beginning of the year (about a 21% increase).
In terms of sectors, the oil and gas sector led with an increase of about 57%. This was followed by the industrial goods sector which increased by about 7%. The consumer goods sector fared fairly, with an increase of about 5%. This wasn’t the case for the financial service sector, as banking and insurance recorded a sharp decline of 1% and 9% respectively.
All of these successes make the Nigerian stock market one of the best-performing stock markets in the world for the first half of 2022. However, this was not the case globally. In America, the three major stock indexes suffered a sharp drop in over 50 years. The Nasdaq dropped down by about 29.5%, while the Dow Jones Industrial Average dropped by over 15%. The S&P 500 also recorded a negative half-year, as it dropped by about 20%
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