Equity trading on the Nigerian Exchange Limited (NGX) closed trading on Wednesday, November 1st, 2023, in the green territory as the NGX All-Share Index appreciated by 1.94% to cross 70,000 index points.
The development was unprecedented in the history of the Exchange being the first time the Exchange will achieve the feat.
The market positive sentiment among investors is being attributed to several factors, including favourable policies introduced by President Bola Tinubu’s administration such as the removal of fuel subsidies, streamlining of exchange rates, the floating of the naira and investors strategically positioned themselves and taking advantage of the recent record earnings posted by quoted firms.
Market performance: According to available statistics obtained by Nairametrics, the equities market on Wednesday closed with capital gains of N739 billion.
- Available statistics to the Nairametrics showed that the All-Share Index, which is the broad index that measures the performance of Nigerian stocks, continued its winning streak as the benchmark index gained 1.94% to settle at 70,581.76 points, the highest point in the history of the Exchange.
- Further analysis revealed that activities on the Nigerian Exchange Limited (NGX) which opened the trading day at N38.039 trillion in market capitalization, closed the trading at N38.778 trillion, hence has earned a gain of about N739 billion.
What operators said: Former President of the Chartered Institute of Brokers (CIS) and the Managing Director of Arthur Steven Asset Management Limited, Mr. Olatunde Amolegbe who acknowledged that this is the first time the exchange is achieving the milestone said:
- “The main driver propelling investors’ confidence in the stocks was the nine months earnings that are being released to the market since the last few days some of them have been positive.
- The market also seems to be positive for some of the moves by the Federal Government to stabilize the Foreign Exchange market.
- Some specific stocks such as financial stocks got a lift as bank stocks benefited from the FX gains and increased in interest rates.
- Stocks that generate from revenue in foreign currency such as Airtel have significant income coming in from foreign currency and have also seen an increase in stock prices,” he said.
Mr. David Adonri, Executive Vice Chairman, of Hicap Securities Limited in a chat with Nairametrics said that investors were in the earning season and that what investors will get from dividends is one of the factors that drove the demand for shares in the market during the third quarter.
He noted that the equities market is defying current political uncertainties because investors are futuristic that the prospect for a yield environment is bright.
- “Optimists also see strength in the market from the perspective of corporate fundamentals which remain strong despite macroeconomic frailties and assault from misfired public policies,” he said.
No doubt, there is a significant appreciation of PBAT’s approach to revamp the economy. Initially, there will be controllable problems here and there. These problems are controllable through sound economic plans. From the look of things, it appears the President is harmed with qualified individuals whose commitment. is to enhance the growth of the economy. People will suffer initially, but at the end, the majority will have course to celebrate.