Emmanuel OchayiNigeria’s equities market recorded its first gain this week on Wednesday, as investors engaged in bargain hunting, pushing the market higher by 0.24%.
This positive close came after two consecutive sessions of losses, despite some investors still having an unclear near-term outlook due to Nigeria’s high interest rate environment.
Join our WhatsApp ChannelInvestors showed interest in stocks such as Eterna, Red Star Express, Stanbic IBTC Holdings, Fidelity Bank, and International Breweries. Stanbic led the gainers, with its share price rising from N52 to N57, a gain of N5 or 9.62 percent.
Eterna’s share price increased from N12.25 to N13.45, adding N1.20 or 9.80%. Fidelity Bank’s stock also saw an increase, moving from N10 to N10.80, adding 80 kobo or 8%.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation rose from the previous day’s 99,051.02 points and N56.031 trillion to 99,284.38 points and N56.163 trillion, respectively. This brought the stock market’s year-to-date (YtD) return to 32.78%.
READ ALSO: Profit-Taking Dips Nigerian Equity Market By 0.12% Amid Banking, Insurance Activity
In 7,690 deals, investors exchanged 308,136,231 shares worth N4.862 billion. The most traded stocks included Fidelity Bank, Oando, Veritas Kapital Assurance, Unity Bank, and Transcorp.
Despite the gains, some investors remain cautious due to Nigeria’s high interest rate environment, which continues to influence their investment decisions. The recent performance of the market reflects a mix of optimism and caution as investors navigate these economic conditions.
Economic analysts note that the recent gains may indicate a temporary shift in investor sentiment, but the long-term outlook remains uncertain. The high interest rate environment poses challenges, but opportunities for gains are still present, especially in stocks that show strong potential.
As investors continue to monitor economic indicators and corporate earnings, the equity market’s performance will likely be influenced by both domestic and global factors. The recent increase highlights the importance of strategic investment decisions in a fluctuating market.
Moreover, Nigeria’s equity market experienced a positive shift on Wednesday, driven by bargain hunting activities. While the high interest rate environment continues to cast a shadow, investor interest in key stocks has provided a boost, reflecting a complex interplay of optimism and caution in the market.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
Follow Us