• Friday, July 19, 2024
businessday logo


Stock investors smile home with over N1trn gain in January

Bulk of these companies’ shares still with controlling-interest investors

For investors who moved to the Nigerian Stock Exchange (NSE) in January with the aim of realising capital gains, the Bourse no doubt rewarded them hugely in excess of N1.13trillion.

Capital gains are profits that occur when a stock is sold at a higher price than the original purchase price, while dividend income is paid out of the profits of a company to the shareholders.

In reviewing the month’s trading data, it showed the record 5.32percent increase in January 2021 was driven largely by bargains in Insurance, Oil & Gas, and Banking stocks.

The equity market had in the review month witnessed impressive run amidst sustained bargain hunting activities by a number of savvy investors. This reflects on all the NSE sectoral indices that closed in green.

Read Also: Insecurity: Buhari holds talks with leaders of Islamic Council

For instance, the NSE 30 which tracks the performance of the 30 most capitalised stocks on the Bourse increased by +4.93percent; NSE Banking (+7.89percent); NSE Consumer Good (+7.04 percent); NSE Industrial (+1.41 percent); NSE Insurance (+29.77percent) and NSE Oil & Gas (+12.43percent).

The stock market opened the year 2021 with All Share Index (ASI) at 40,270.72 points and listed stocks’ value at N21.057 trillion.

At the close of trading session on Friday January 29 being the last trading day in January 2021, the ASI increased to 42,412.66 points while the value of listed stocks advanced to N22.186 trillion.

In the absence of any negative events capable of adversely affecting investors’ confidence, the market still looks good to continue its rally into the new month of February as recent “Hold” decision by MPC strengthens interest in value stocks.