In the dynamic landscape of the Nigerian Exchange Limited, Airtel Africa Plc and MTN Nigeria Plc made headlines by collectively amassing a remarkable 20.09% gain in share value throughout the year 2023. Investors celebrated a staggering N2.113 trillion windfall as the market closed on December 29th.
The telecom sector, represented by MTN Nigeria Plc and Airtel Africa Plc, exhibited remarkable resilience amidst economic volatility, contributing to the robust performance. Examining the gains, MTN Nigeria saw a substantial increase, closing the year at N264 per share and N5.542 trillion in market capitalization, signifying a notable gain of N1.166 trillion or 22.79% year-to-date.
Similarly, Airtel Africa experienced an impressive surge, with shares rising to N1187 per share and market capitalization reaching N7.091 trillion. This marked an additional N947 billion or 15.41% to the market capitalization, solidifying the telecom companies’ impressive financial standing.
Market observers, including Tajudeen Olayinka, CEO of Wyoming Capital and Partners, noted the exceptional bullish run throughout 2023. He highlighted the pivotal role of President Bola Ahmed Tinubu’s pro-market policies, particularly the removal of fuel subsidies and exchange rate unification, in boosting market confidence.
The heightened market-wide confidence persisted throughout the year, with equities appreciating by about 45% as of December 29, 2023. The NGX Exchange closed the year at a remarkable 74,773.77 index points, representing a year-on-year increase of 45.90%. Market capitalization mirrored this upward trend, experiencing a significant uptick of N13 trillion, concluding at N40.92 trillion.
Executive Vice Chairman of Hicap Securities Limited, Mr. David Adonri, highlighted the breaking of several market records, including surpassing the 15-year-old highest index level and crossing the N15.54 trillion market capitalization mark.
The positive market sentiment among investors was driven by various factors, with President Bola Tinubu’s administration’s favorable policies playing a key role. The removal of fuel subsidies, rationalization of exchange rates, and the floating of the naira contributed to investors strategically positioning themselves, capitalizing on the record earnings posted by quoted firms. As the NGX Exchange closed the year on a high note, the positive trajectory marked the fourth consecutive annual gain, showcasing the strength of the Nigerian market.
Source: NairaMatics