Domestic equity market gains N8.416bn in 9 months

The local equity market has reported bullish note at the end of nine month trading activities, gaining N8.416 billion as investors sustained their positive sentiment in the market.

Transactions within the period showed that market capitalization of listed equities appreciated by 30.15 per cent to close at N36.331 trillion at the close of trading on Friday against N27.915 trillion it opened for the year in January. The NGX All Share Index also appreciated by 15131.08 basis points to 66382.14 points from 51251.06 points it closed in December 30, 2022.

Meanwhile in the month of September, the market declined by N91 billion or 0.25 per cent from N36.422 trillion it closed in August to N36.331 trillion on September 29, 2023 while index dipped by 166.85 basis points to 66382.14 points from 6548.99 points it closed in the previous month.

But the month of August took positive note, gaining N1.02 billion, representing a growth of 2.29 per cent from N35.402 trillion reported in July.

The NGX index also grew by 1492.60 basis points to close the month at 66548.99 points from 65056.39 points made in the preceding month.

However, the market within the nine month period showed an unusual rally, especially in the shares of industrial goods, financial services and consumer sub sector which helped in stimulating market activities within the period.

Capital market operators attributed the performance of the market to a steady growth of the domestic money supply, which has helped to stimulate economic activities in the system.

An analysts ifeanyi Okolo said that High extra-budgetary expenditure as well as increase in interest rates helped to attract investors to federal bonds and treasury bills, adding that investors took advantage of the usual growth in banking sector earnings divert investment when interest rates rise.

The chief operating officer of InvestData Consulting Limited, Mr. Ambrose Omordion said as we enter the last quarter of this year it is expected that market will have mixed sentiment on bargain hunting and portfolio repositioning ahead of fourth quarter, adding that investors are waiting for the new policy of the new Central Bank of Nigeria Governor and his team that expected to impact positively in the financial system.