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Business News of Tuesday, 10 May 2022

Source: nairametrics.com

Nigerian Stocks cross 50,000 points for the first time since 2008

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The Nigerian All Share Index crossed 50,000 on Wednesday, May 4th closing trading at 50, 126 points.

This is the first time the All-Share Index, which is the broad index that measures the performance of Nigerian Stocks has gone past the 50,000 mark since July 2008 when it closed at 53,110. The ASI rose to as high as 65,652.4 in February 2008, its highest ever.

The total capitalization of the equities market now stands at a whopping N27.9 trillion up from N22.2 trillion at the end of December 2021. Stocks have now gained a whopping N5.7 trillion in a space of 4 months and a week.

Against the backdrop of a global sell-off, Nigerian All Share Index has defied odds gaining for the last 18 straight days taking the year-to-date gains to over 21.5%. The ASI is now trading at 51, 903 and is likely to keep sustaining the surge.

Globally, stocks have had a difficult year exacerbated by rising inflation and geopolitical challenges.

The Nigerian Economy has also faced difficulties with rising inflation, scarcity of forex, and a rise in Ponzi schemes. However, stocks continue to rise amidst an increase in demand from investors with little to no alternative investments.

At the end of the week, stocks like MTN, Airtel BUA, Guinness, and Nigeria Breweries had all racked up double-digit gains yar to date propelling a surge in share prices that has unlocked tens of billions in market valuation for investors.