Equities Investors Have 'Fun' as NGX Crosses N33trn

Equities Investors Have ‘Fun’ as NGX Crosses N33trn

Equities investors have fun as Nigerian Exchange (NGX) market capitalisation crossed N33 trillion, according to data from the local bourse. The sustained bargain hunting continues amidst foreign investors’ planned re-entry into the Nigerian markets after the clouds of dust surrounding the devaluation of the local currency settle.

Last week, Bank of America global research said in an update that naira is now undervalued, and expected future rate to be around N680. Despite foreign investors’ apathy, the local bourse has been dominated by institutional investors trading the highs and the lows to optimise their portfolios’ returns.

Nigeria’s interest rate hikes have not lifted real return on naira assets to cover inflation exposures, making the space unattractive except for the fact that pension funds administrators are required to hold a large chunk of pension assets in less risky government securities.

On Friday, trading activities in the local bourse ended positive, key performance indicators surge ahead of second quarter earnings season. A number of stockbrokers told MarketForces Africa equities market could skyrocket beyond expectation in 2023; saying foreign investors’ return could drive buying temperature higher. 

In its market note to investors, Futureview Financial Services stated that the banking and telecommunications sectors witnessed a notable rally, which contributed to a 1.43% increase in the benchmark NGXASI at the session’s conclusion.

Data from the Nigerian Exchange website showed that the All-share index (NGXASI) reached a closing point of 60,968.27, marking a significant rise from its previous standing at 60,108.86 points on Tuesday.

Investors’ enthusiastic buying activity in 57 stocks played a pivotal role in driving the day’s impressive performance, according to market analysts at Futureview Financial Service. 

Significant contributions to the upsurge recorded came from the likes of AIRTELAFRI, which experienced a remarkable 4.75% increase, followed by MTNN with a solid 2.32% rise, the investment firm told investors.

Market analysts also noted that GTCO and ZENITHBANK made their mark, showcasing gains of 1.74% and 0.74% respectively. Additionally, ETERNA witnessed a substantial surge of 9.95%, while PZ stood out with an impressive 10% climb.

Similarly, market activity for the day was positive as volume and value traded rose by 30.69% and 27.30% to close at 998.08 million units and N15.96 billion, respectively.

The market breadth witnessed a significant decrease, declining from 3.92x to 2.85x, according to market data cited by separate stockbrokers in their notes. Among the listed stocks, 57 demonstrated upward movement, while 20 experienced a decline, and 48 remained unchanged at the closing bell, said analysts at Futureview.

Consequently, the Year to Date return soared to an impressive 18.96%, marking a significant milestone for investors.   Overall, the equities market capitalisation rose by N467.96 billion to N33.20 trillion. # Equities Investors Have Fun as NGX Crosses N33trn

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