The Nigerian equity market showed resilience against global trends, with its market capitalization increasing by 46.6 percent or N13 trillion last year, according to the World Federation of Exchanges.
In contrast, the global equity market capitalization also rose by 13 percent or over $13 trillion in 2023.
Despite the overall growth in global market capitalization, trading value, and volumes saw a decline of 10.6 percent and 3.4 percent, respectively, in 2023. This decline marked the lowest annual trading value across all regions in the last three years.
The WFE report highlighted that the average trade size reached its lowest level in the past three years, standing at $2,776.45 per trade.
Regarding non-IPO listings, the Americas and EMEA region hit their lowest levels in three years, while the APAC region saw its maximum. Capital raised through already listed companies hit its lowest levels in each region. The number of IPOs across all regions hit a three-year low, with only 1,217 IPOs welcomed in 2023.
Capital raised through IPOs experienced a sharp decline compared to 2022, with the APAC and EMEA regions down by -43.3 percent and -86.1 percent, respectively, while the Americas saw a significant increase of 71.3 percent.
The average size of an IPO followed a similar trend, hitting its lowest levels in the APAC and EMEA regions, while almost doubling in the Americas. Despite this decline, global markets saw the listing of five unicorns in the second half of the year, in addition to the three unicorns listed in the first half.
However, the number of exchange-traded derivatives contracts, including both options and futures, reached its highest level in the past three years, totaling 104.06 billion for options and 30.33 billion for futures (134.40 billion derivatives contracts traded). This represents a 58.9 percent increase compared to 2022.
Source: Techeconomy
