Investors in Nigeria’s stock market booked about N1.411trillion gain in the month of August, a remarkable feat at the Lagos bourse which came despite trading sessions of profit-taking and bargain hunting.
The market increased by 3.44 percent in the review trading month ended Thursday, August 31.
“We have started to see profit taking in recent gainers, while the banking sector’s rebound was short-lived, as investors still await H1’23 results from GTCO, ZenithBank, Access Corporation and UBA,” said Lagos-based analysts at Vetiva Research who had also expected continued mixed trading sessions.
The market which had started August with All-Share Index (ASI) and equities market capitalisation at 64,337.52 points and N35.011trillion respectively closed the review month at 66,548.99 points and N36.422trillion.
In eight months to August 31, the market’s positive return stood at 29.85 percent.
Looking at their recent global outlook for the second half (H2) of the year, Lagos-based analysts at United Capital who noted that the Nigerian stock exchange was met with a fantastic first half in 2023 also said they anticipate a broadly favourable equities market in H2 of 2023.
They supported their expectations on two key factors: the “unification of the exchange rate”, and “advocacy for a lower interest rate environment”.
These factors they said will stand as a significant upside for the earnings performance of listed Nigerian corporates, “which will bolster investors’ confidence toward listed corporates, particularly in earning seasons (H1-2023, and Q3-2023 earnings season)”.