Following the stellar performance recorded by the Nigerian stock market since it began a gradual recovery last year, the Nigerian Stock Exchange (NSE) All-Share Index or ASI, has continued to perform above the global index trend, with only the NIKKEI sailing close to it in year-to-date (YTD) return performance.
The Exchange's benchmark index, popularly known as the ASI, measures the direction of stock prices in the Nigerian equities market. Experts believe the ASI’s impressive performance has been boosted by reforms in the capital market, sound fundamentals of quoted companies.
Specifically, the ASI's performance in the last three months was boosted by the news that United State's Federal Reserve plans to discontinue its Quantitative Easing (QE), a development that impacted developed economies negatively.
Financial markets across the globe, particularly the emerging market counterparts were thrown off-balance between June and mid-September after the US Fed signalled that it will scale back on the $85 billion monthly bond purchases contingent upon positive economic data. The Fed chairman had suggested that a tapering was likely if inflation follows a 2 per cent target rate and unemployment decreases to 6.5 per cent.
Meanwhile, traders are bullish that trading activity on the bourse would increase this week as investors continue intense bargain hunting hence market breath possibly staying positive within the period.
The quantitative easing crisis was followed by the recently-resolved US government shutdown, which weighed down Western due to bearish sentiments that trailed the development.
Numbers of performances of select stock markets and indices, made available to THISDAY by Investmentone Limited, showed that the Dow Jones Industrial Average which closed at 15,372 points on Monday has recorded a YTD return of 15.02 or 15.02 in Dollar terms.
The ESTX 50 recorded a YTD return of 11.09 per cent or 14.04 per cent in Dollar terms. Also, the FTSE 100 index recorded a YTD return of 9.43 per cent or 8.06 per cent in Dollar terms. The NIKKEI 225 index recorded a YTD return of 34.9 per cent or 19.2 per cent in Dollar terms. On its part, the S&P 500 recorded a YTD return of 18.4 per cent or 18 per cent in Dollar terms.
Others are the Brasil BOVESPA Stock IDX, which recorded a negative YTD return of 13.9 per cent and -20 per cent in Dollar terms. The FTSE/JSE Africa ASI recorded a YTD return of 11.9 per cent and a negative 5.09 per cent in Dollar terms. The Shanghai SE Composite also recorded a negative YTD return of 4.1 per cent and a negative 2.3 per cent in Dollar terms. In a clear lead was the NSE ASI, whose YTD return stood at 37.3 per cent or 27.18 per cent in Dollar terms.