Stock market closes flat as investors watch Nigeria’s social protests
The Nigerian stock market closed flat on Wednesday October 14 as the recent social protests across the country against police brutality is being closely watched by the investing public.
The market could not sustain preceding day’s gains despite record rally by equities like Guinness Nigeria Plc (+3.33percent); Eterna Plc (+9.82percent); GTBank Plc (+1.35percent); Africa Prudential Plc (+5.75percent); and Lafarge Africa Plc (+1.47percent).
“It must be noted that the recent rally remained driven by influx of liquidity in the system amid limited investment outlets and abnormally low yield environment”, said Lagos-based analysts at United Capital Plc.
The analysts maintain that while the protest against police brutality may trigger some panic sales, if not de-escalated, amid recent realities in the economy which is yet to get over the devastating impact of the Covid-19 shock.
The Nigerian Stock Exchange All Share Index (ASI) stood flat at 28,336.12 points while value of listed equities stood at N14.810trillion. In 3,779 deals, investors exchanged 199,999,710 units valued at N2.749billion. Zenith Bank Plc, UBA Plc, GTBank Plc, FBN Holdings Plc and Wema Bank Plc were actively traded stocks.
“Sustained low yield environment vis-a-vis massive system liquidity which will remain the case till year end as well as attractive dividend yields, implies that the investment case for equities remain compelling”, United Capital analysts added.