Nigerian Exchange All Share Index closed trading on Tuesday, July 11th at 65,669.29, crossing the end of month all-time high end of month point recorded in February 2008.
Gatekeepers News reports that according to Nairametrics, the previous end of month high for the stock market was February 2008 when it closed at 65,652.4, an era that is often recognized as the peak of the stock market boom of the early 2000s.
The record single day all time high for Nigerian stocks, however remains 66,671 achieved 5th March 2008.
The stock market at the time was boosted by several private placements that went on to become initial public offerings, right issues, and public offers as investors raised money from a wealth-driven retail investor market.
The market unraveled and eventually crashed, falling to as low as 19,825.1 by March 2009, the lowest point ever recorded since 2008.
This time around, there are no margin lendings or public offerings, or retail investor frenzy instead a bull run that is driven by policy decisions viewed as positive for a stock market that has traded at low prices earning multiples for almost a decade.
The bull run is being driven by investors, mega-billionaire moves, and foreign investors who are gradually returning to the stock market.
A relatively successful election, revision of the forex policies to a managed float, and the removal of fuel subsidies have also boosted investment sentiments.
There’s also an increase in capital inflows in the stock market with about N1 trillion recorded in the first 5 months of this year compared to N1.5 trillion in the whole of 2022.
Nigerian Equities currently trade at a price-to-earnings multiple of 11.77x, higher than its emerging market peers of South Africa, Egypt, Kenya, and Ghana which trade at 10.57, 8.79x, 5.69x, and 3.19x respectively.
