Investors gain N1.71trn as stock market rises by 4.30% in October

Investors in Nigeria’s equities market booked about N1.71trillion gain in the trading month ended October 31.

The market rose by 4.30 percent in the review trading month while its year-to-date (YtD) return stood at 35.09 percent.

Despite earlier concerns on inflation and falling naira in the FX market, the equities market remained broadly positive in October as investors continued to bet on positive third-quarter (Q3) earnings results and positioned themselves for the future.

The record gain in the review month was driven by buy decisions that favoured mostly banking, industrial, oil & gas, and consumer goods stocks despite profit taking in insurance stocks.

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The market which had started October with All-Share Index (ASI) and equities market capitalisation at 66,382.14 points and N36.331trillion respectively increased to 69,236.19 points and N38.038 trillion.

“Last week, and as earlier advised, we began to re-balance out notional positions in bank stocks to better reflect their near-neutral weights relative to each other, while also reverting from a small underweight position to a neutral position in them.

“Also, as early advised, we made notional sales in TotalEnergies in order to take notional profits from this position. We intend to continue building up the Model Equity Portfolio’s aggregate position in banks to a neutral position this week and to continue with notional sales of TotalEntergies. We plan no other changes this week,” Coronation Research analysts said in their October 30 note to investors.