Emmanuel OchayiNGX All-share Index Surpasses Psychological Milestone
The Nigerian stock market All-share Index (ASI) broke past the 100,000-point threshold as trading activity picked up momentum.
The milestone was reached after the stock market recorded three consecutive days of positive sessions against two days of negative closes for the trading week ending on Friday, June 28.
Join our WhatsApp ChannelInvestors Shift from Wait-and-See Approach
In the early part of the review week, trading activities were subdued as investors adopted a cautious, wait-and-see approach.
“We noticed a shift in investor sentiment as the week progressed,” said Chinedu Okeke, an equity analyst at FinTrust Securities. “The renewed activity was largely driven by the performance of oil & gas, insurance, and banking stocks.”
Gains Driven by Key Sectors
Despite profit-taking in consumer goods and industrial stocks, the market’s positive close was bolstered by the strong performance in the oil & gas, insurance, and banking sectors.
“These sectors showed resilience and attracted significant interest from investors,” explained Okeke. “Fundamentally sound stocks within these sectors provided the necessary boost to lift the market.”
Market Records Significant Gains
As bargain hunting sentiment grew, investors reaped substantial gains, recording about N178 billion in profits.
By the end of the week, the NGX ASI had risen by 0.32 percent, climbing from the previous week’s low of 99,743.05 points to 100,057.49 points.
Similarly, the Market Capitalisation increased from N56.423 trillion to N56.601 trillion.
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Positive Year-to-Date Performance
The equities market’s year-to-date (YtD) return continued to show strength, standing at 33.81 percent as reported by Prime Business Africa. “This positive YtD return indicates a strong recovery and growing investor confidence in the market,” noted Sarah Adebayo, a financial analyst at GTI Capital.
“Investors are increasingly favoring stocks with solid fundamentals, which is a good sign for the overall health of the market.”
Outlook for the Coming Weeks
Market analysts predict that if the current trend of renewed investor confidence continues, the Nigerian stock market could see further gains in the coming weeks.
“We are optimistic that the market will sustain its upward momentum, especially with the anticipated positive earnings reports from key sectors,” added Adebayo. “However, investors should remain vigilant and consider the broader economic indicators that might impact market performance.”
As the Nigerian stock market celebrates this milestone, investors and analysts alike are cautiously optimistic about the future, keeping a close eye on both domestic and global economic factors that could influence market dynamics.
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.
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