The Nigerian Exchange (NGX) Limited began the year 2021 on a high note following the bullish run experienced in the fourth-quarter (Q4) of 2020.

However, the optimism that shaped the capital market at the beginning of the year declined towards the end of first-quarter (Q1) of 2021.

This can be seen in the return posted by NGX All Share Index which closed the first quarter at 39,045.13 points, signifying a 3.04percent decrease from 40,270.72 points at the start of the year.

Nonetheless, all equity market indexes, except the NGX ASEM index, posted positive one-year returns.

In Q1 2021, trading activities increased when compared with Q1 2020 as the total volume and value of securities traded rose by 26.90percent and 8.46percent respectively to 31.47billion units and N339.58billion ($830.94million).

In Q1’2021, domestic investors accounted for 77.79percent of equities trade while foreigners accounted for just 22.21percent. Total foreign transactions in Q1’21 was N150.23billion ($370million).

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There was a 10.18percent increase in the average daily value traded from N4.89 billion ($12.69 million) in Q1 2020 to N5.39 billion ($13.19 million) in the period under review.

Similarly, the average daily volume of securities traded grew by 28.91percent to 499.52 million units in Q1 2021, from 387.50 million units in Q1 2020. Average daily transactions in Q1’21 was 5,203.65, up 11.69percent.

At the end of the quarter, the average PE ratio of The Exchange’s listed equities stood at 87.25 while equity turnover velocity was 6.05percent.

The NGX is a multi-asset exchange providing a home to the best of African enterprises listed on its Premium, Main, and Growth Boards; diverse fixed income securities; Exchange Traded Products (ETPs); Mutual and other investment funds.

Total market capitalisation in Q1’2021 was N39.56trillion ($96.81billion) representing 55.26percent growth over a 52-week period.

Equities market capitalisation at N20.43trillion ($50billion) in Q1’2021 implies an increase of 84.31percent over a 52-week period.

Also, ETF market capitalisation rose by 228.46percent to N20.32billion ($49.73million), while Bonds market capitalisation at N17.90trillion ($43.79billion) in Q1’21 shows a growth of 33.59percent over a 52-week period

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By Iheanyi Nwachukwu • May 27, 2021

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.

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