Investors in Nigeria’s listed equities booked about N370billion gain in the trading week ended Friday August 13 as sentiment failed to tilt more towards the bears.

Defying most analysts’ views on the review trading week, the market grew by 1.86percent, driven largely by increased demand in Oil & Gas, Banking, and Consumer Goods stocks.

This month alone, the market has rallied by 2.56percent as investors showed remarkable interest in value stocks ahead of their half-year (H1) results releases. The record positive in review week helped reduce the negative return seen this year to -1.83percent.

Read also: Nigeria’s equities rally further by 0.11%

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The Nigerian Exchange Limited (NGX) All Share Index (ASI) increased from week-open low of 38,810.75 points to 39,522.3 points, while the value of listed equities rose from N20.221trillion to N20.591trillion.

Except NGX Industrial Index (-1.35percent) and NGX Insurance Index (-2.49percent), all other key sectoral indices closed the week in green –namely NGX Banking Index (+0.49percent), NGX Consumer Goods Index (+0.30percent), NGX Oil & Gas Index (+1.05percent), and NGX Pension Index (+0.32percent).

Lagos-based analysts at Meristem had in their August 9 note to investors said “the allocation of Special Drawing Rights worth $3.35billion by the International Monetary Fund (IMF) to Nigeria, effective August 23, 2021 is expected to help ease investor concerns around FX liquidity and outlook”. This, the analysts noted should translate to positive sentiment in the equities market.

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By Iheanyi Nwachukwu • August 15, 2021

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.

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