Nigeria’s stock market on Tuesday recorded its first positive close after six consecutive days of negatives, rising by 0.22 percent ahead of the outcome of presidential election of the United States of America (USA).
The outcome of US presidential election is poised to significantly impact markets as well as potential migrants to the United States, with contrasting policies proposed by Donald Trump and Kamala Harris.
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“Market sentiments turned bullish with green close in some key banks as they dominated the activity chart,” said analysts at Vetiva Research in their post-trading note to investors.
They anticipate this trend to filter into Wednesday’s session, “with the ASI expected to close in the green barring any major loss in any of the heavyweights”.
At the close of trading session on Tuesday, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation increased from preceding trading day’s lows of 96,907.73 points and N58.720 trillion respectively to 97,123.61 points and N58.851trillion.
Stocks that helped the market to end the six-day decline include Conoil, John Holt, UBA, Eunisell Interlinked and PZ Cussons.
Conoil rallied the most on the Lagos Bourse from N189.30 to N208.10, adding N18.80 or 9.93 percent. It was followed by that of John Holt which increased from N3.63 to N3.99, adding 36kobo or 9.92 percent.
UBA also moved from N31.90 to N35.05, up by N3.15 or 9.87 percent. Eunisell Interlinked rose from N6.18 to N6.79, adding 61 kobo or 9.87 percent, while PZ Cussons rose by N1.95 or 8.48 percent, from N23 or N24.95.
United Capital research analysts in their recent investment views said “the bulls will remain incentivised to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market”.
Read also: US election: Forecasting trade implications for Africa
They analysts also foresee fund managers and businesses beginning to entertain mid-long-term (≥6 months) investment objectives, “cherry-picking only sound equities with strong fundamentals and ongoing corporate actions”, adding that “this strategy will maximise market opportunities, thereby optimising portfolio returns,”
The market’s year-to-date (YtD) return rose to 29.89 percent. In 10,679 deals, investors exchanged 3,602,242,064 shares worth N25.569billion.
Sovereign Trust Insurance, NEM Insurance, UBA, Zenith Bank and Veritas Kapital Assurance were actively traded stocks on Tuesday.
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