Trading on equities at the Nigerian Exchange Limited (NGX) recorded a gain of N512 billion within six trading sessions as investors continue to increase their buying pressure, especially on blue-chip stocks. Positive sentiments had returned to the local bourse as the gradual release of H1 corporate earnings bolstered buying interests in dividend-paying stocks. Statistics available to New Telegraph showed that activities at the NGX, which opened trading on August 9, at N20.094 trillion in market capitalisation and 38.567.26 in index, closed on the sixth day at N20.606 trillion and 39,550.36 index points, hence earning gain of about N512 billion or 2.5 per cent.
Market analysts believe the renewed sentiment in the local bourse has also grown following crave to increase capital gains on the back of low prices of stocks owing to upset in the financial market. Analysts at Codros Capital, while reacting to the development, said: “We believe inves-tors will digest the flurry of earnings released this week to gauge the extent of improvement in company’s fundamentals given the tepid recovery in macroeconomic conditions. “As a result, we expect portfolio rebalancing activities into cyclical stocks and positioning in dividend-paying stocks to shape market performance in the week ahead.
With the MPC meeting out of the way, we believe developments in the macroeconomic landscape and corporate actions will shape the direction of the local bourse.” To analysts at Cowry Asset Management Limited, “in the new week, we expect the equities market to trade positive as investors position in stocks of companies that printed positive financial results in H1 2021 as well as those likely to give interim dividends.”
Recall that equities ended the month of July 2021 on an impressive note as investors increased their buying pressure, especially on blue-chip stocks. Activities at NGX, which opened the trading month at N19.760 trillion in market capitalisation and 37.907.28 in index at the beginning of trading on July 1, 2021, closed the month at N20.083 trillion and 38,547.08 index points, hence has earned a monthto- date gain of about N325 billion or 1.7 per cent.
Accordingly, the MTD return moderated to +1.7 per cent, while the YTD loss increased to -4.3 per cent. Sectoral performance, according to market analysts, was broadly negative, following declines in the industrial goods, which lost -1.3 per cent, insurance with a loss of -1.1 per cent and banking that shed -0.9 per cent in indices, and gains in the oil and gas with +3.8 per cent and consumer goods +0.1 per