Stock market: Investors rake in N4.6trn in 8 months

Stock market: Investors rake in N4.6trn in 8 months

Investors in Nigeria’s stock market have gained over N4.58 trillion in the first 8 months of this year.

However, on monthly performance, the investors lost over N282 billion of their investment the month of August 2022, indicating a sell pressure arising from the rising inflation rate, market sentiments and other macro economic circumstances.

Available data from the Nigerian Exchange Limited, NGX, yesterday at the end of trading for the month of August 2022, revealed that the stock market capitalisation which represents value of investments on the Exchange, rose to N27.162 trillion from N22.296 trillion at the end of December 2021.

In the same vein, another equities market gauge, NGX All Share Index, ASI, which measures the entire market return rose 16.7 per cent to 49,836.51 points from 42,716.44 points at the end of December 2021.

But in the month of August the equities market dropped by 1.06 per cent or 533.74 points from 50,370.25 points it closed in the previous month.

Meanwhile, yesterday trading revealed that with just the Insurance Index closing in the red, the stock market halted this week’s bearish run, closing the last trading session of the month with 39 bases points, bps, gain. Among others, the drivers of the day’s positive close include BUA Foods which gained 448bps, Guinness 988bps ,Wapco 460bps    and Fidelity Bank 229bps , while Unilever dropped by -722bps,    Nigerian Breweries -66bps and Zenith Bank (-23bps.

Responding on market development, analysts at Vetiva Dealing & Brokerage Limited, stated: “What will shape the market tomorrow? The ASI dipped 1.06% Month-On-Month, MoM, making this its third consecutive monthly decline.

“However, in comparison with July’s 2.79%, the market was able to moderate the loss, as pockets of positive activity in large-cap names like Airtel Africa, BUA Foods and Nestle, improved performance.

“In the absence of any major positive catalyst to drive the mark.