Barely one week after the CBN directed non-bank financial institutions not to participate in Open Market Operations (OMO) auction, equity investors have seen about N300billion added to their pockets.
This has made stockbrokers happy, according to some of them who spoke to BusinessDay ahead of their upcoming conference. They see the upward trajectory continuing.
Since Treasury Bills rates hit south on Wednesday, 13th November, the Bulls have locked horns with Bears in the equities market, leaving the ASI north-bound on 14th November, 2019.
From N12.810trillion last weekend, equity value has risen to N13.087trillion.
Aside the NSE ASI, almost all stocks have either hit north or maintained status quo with very minimal losses recorded on stocks. In fact, only 3 stocks made the top losers list on 14th November, this is the most gain we have seen in 6 months.
Recently, many analysts were bold to tell investors in their notes to purchase the shares of GTB, Zenith and UBA based on their dividend and yield potentials.
The performance is an indication of improving sentiment buoyed by the new CBN directive restricting local institutions from participating in OMO auction, which clearly favours the Equity market.
“While we expect some profit-taking, we are of the opinion that the renewed interest will be sustained for the market to close in the green,” said Lagos based Vetiva Securities.
“When money market rates are down, the equities market becomes attractive for better returns,” said Capital Bancorp
