Investors in Nigeria’s equities market are increasingly consolidating their investments in equities as pro-market reforms by President Bola Tinubu-led government look good to attract foriegn capital into Africa’s largest economy.
Remarkably, on Thursday, July 6 about 4.691billion units of FBN Holdings shares worth N87.80billion were traded, pushing the share price to new high of N19 per share, near its 52-week high of N19.9.
Nigeria’s equities market strengthened its journey into the green zone by 0.81percent or N270billion as investors positive sentiments persist on the Nigerian Exchange Limited (NGX).
At the close of trading, the Nigerian Exchange Limited (NGX) All Share Index (ASI) and Market Capitalisation increased from preceding day’s low of 61,523.57 points and N33.500trillion respectively to 62,019.88 points and N33.770trillion.
Temi Popoola, Chief Executive Officer, Nigerian Exchange Limited (NGX), had earlier this week expressed optimism around the recent policies by the Federal Government since the inauguration of President Tinubu, saying that investors are responding positively with bullish sentiments in the market.
Popoola remains hopeful that the current bullish sentiments in the domestic bourse will be sustained in the long run.
Equity investors have endured long period of bearish sentiment on the floor of NGX but that has changed considerably since President Tinubu’s policy statements on May 29, 2023.
Transactions on the exchange concluded the first half (H1) of the year on a positive note, with the NGX All-Share Index (ASI) gaining 18.9 percent and closing at 60,968.27 points, marking a significant milestone for the index as it reached its highest level in 15 years since March 5, 2008 when it stood at 66,381.20 points.
Investors have also had cause to smile as their wealth rose by N5.3 trillion in H1. This impressive performance, according to the CEO, came amid audacious macroeconomic reforms under the new administration after a 5-year bearish cycle.
On Thursday, Union Bank, Learn Africa, Eterna, Conoil and MRS lead the league of advancers on Thursday. Union Bank share price increased most, from N7.50 to N8.25, up by 75kobo or 10percent.
Learn Africa followed after rising from N3.20 to N3.52, up by 32kobo or 10percent. Eterna also rose from N23.50 to N25.85, up by N2.35 or 10percent.
Conoil advanced from N93 to N102.30, up by N9.30 or 10percent, while MRS moved from N83 to N91.30, adding N8.30 or 10percent.
At the close of trading, the market’s year-to-date (YtD) positive return increased to 21.01percent.
“Although sentiments still remain positive in the long-term, investors continue to move in and out of their positions, while still taking a cautious stance,” Lagos-based analysts Vetiva Research had said ahead of Thursday trading.
Stocks like FBN Holdings, FCMB Group, Access Corporation, Japaul Gold and Transcorp were actively traded as investors in 9,948 deals exchanged 5,443,829,746 shares worth N95.005billion.
“Considering that there are many stocks trading at attractive discount, we expect
positive sentiment in the market this week,” Futureview research analysts had said in their investment views for this week.
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