Nigerian Exchange 27.84% Return Antidote for Inflation
The Nigerian Exchange (NGX) has delivered inflation-protected returns for investors trading highs and lows in the Lagos bourse, reflecting untamed positive sentiment on listed stocks. Based on market data, the Nigerian bourse delivered a 27.84% year-to-date return on Friday close following a sharp rally across sectoral indexes.
Trading activities have been relatively positive as fear of missing out from the ongoing bank continues to attract positions taking in companies with rock-solid fundamentals. Transactions have been fueled by local and foreign portfolio investors, reflecting growing market confidence, supported by Nigerian reforms and economic outlook.
At the close of the trading session on Friday, the market return surpassed the annual inflation rate of 22.22%, and analysts said the local bourse is yet to peak given the incoming earnings release from listed companies.
MarketForces Africa Research said the NGX return has become a gauge for pricing any financial assets, adding that any investment that has not delivered 28% is not worth it at the moment.
Many listed companies across sectorial indexes like banking, insurance, oil and gas, consumer goods, and industrial goods have delivered multiple year-to-date returns in the Nigerian market.
Officially, the Nigerian market has become the go-to place for inflation-protected investment platforms, eclipsing the performance of the debt market, where risk-averse investors earnings average 20% per annum.
From a technical standpoint, the NGX All-Share Index remains in overbought territory, with the Relative Strength Index (RSI) at 92.41, suggesting a potential correction, according to Cowry Asset Limited.
The investment firm said nonetheless, the index continues to trade above the T-line and both the 50-day EMA and 50-day SMA, indicating underlying strength. #Nigerian Exchange 27.84% Return Antidote for Inflation Equity Investors Gain N823bn, NGX Market Cap Surpasses N83Tn
