Nigerian Stock Market Sees Huge Surge, Gains N852 Billion In Two Days
The Nigerian stock market gained N852 billion in the first two days of this week as investors remained upbeat.
The market, has remained bullish, after it gained N641 billion (about $1.6bn) on Monday and extended its rally with an additional gain of N211 billion ($about 550bn) yesterday.
This surge lifted the capitalisation of the Nigerian Stock Exchange (NSE) to N17.059 trillion (about $44bn) while the NSE All-Share Index (ASI) climbed to 32,647.10.
Market analysts had predicted that stock market would remain bullish after recording an unprecedented growth in October.
The market had jumped by N1.934 trillion (about $5.2bn)in October, which was its best monthly gain since 2018 on the continued inflow of funds searching for real returns and positive reactions to better-than-expected third quarter(Q3) and nine months earnings so far released.
The Chief Research Officer, Investdata Consulting Limited, Mr. Ambrose Omordion, said the low-yield environment and other factors had triggered buying interest in the equity space despite the seeming disconnection with economic realities to sustain the four consecutive months of bullish run.
“The possibility of prices rallying further from here is high, amidst portfolio reshuffling on the strength of the Q3 numbers, just as investors would be assured of reward in the form of dividends when the full-year scorecards begin to flow into the market in the early days of 2021 despite the possibility of a dividend cut.
“It is expected that discerning investors and traders would take advantage of the prevailing relative low stock prices, year-end season and cycle to grow their income, ahead of major earnings season in the first quarter of 2021.”
After the positive performance in October, the market had opened the month maintaining the bullish trend with a gain of 1.56% last week. And market analysts had envisaged a sustained bull run this week.
It has seemingly come to pass.
Photo > Courtesy NAN