From June 2023 to August 2024, the naira plummeted from N462/$ to N1,589/$ affecting market capitalization. While NGX added N15.09 trillion (approx. $9.67 billion) in naira terms, dollar equivalent fell from $45.6 billion to $35.3 billion.
In comparison, Johannesburg Stock Exchange (JSE) had a stable performance while Ghana Stock Exchange (GSE) leads with 41.87% YTD Returns.
The devaluation has had mixed effects on the economy and stock market at large. Foreign investment has been attracted by policy measures including hawkish stance on interest rates as well as foreign exchange interventions but at same time liquidity in equities market has declined due to such measures.
In H1 2024, foreign inflows increased to N229.07 billion despite challenges signaling continued interest from foreign investors. As a result of this increased interest, landmark listings and recent technological advancements have resulted in innovative solutions slated for deepening the market ensuring both domestic and international participation through various avenues
