By Nkiruka Nnorom
The protracted bearish run in the equities market that followed the Coronavirus (COVID-19) lockdown as well as fall in oil prices that resulted in weak activities in the stock market in the first half of the year has started to recede as investors gained N1.26 trillion from their investments in the third quarter (Q3) ended September 30, 2020.
Specifically, the market capitalisation of listed equities rose to N14.025 trillion yesterday from N12.770 trillion at the beginning of the quarter, indicating 9.83 percent increase.
In the same vein, the benchmark All Share Index (ASI) rose by 9.6 percent to settle at 26,831.76 points from 24,479.22 points, a development market operators attributed to investors’ response to rebound in crude oil prices and gradual reopening of the economy.
Market operators explained that the drop in yield in the money market that followed the reduction of interest rate by the Central Bank of Nigeria (CBN) aided recovery during the period.
Further analysis of activities in the market showed that performance was positive across various sectors with the exception of the oil and gas sector that declined marginally by 0.07 percent.
The banking sector led sartorial performance, advancing by 10.1 percent, followed by the insurance sector, which appreciated by seven percent. The consumer goods industrial goods sectors closed as the third and fourth most active sectors, rising by 2.74 percent and 0.81 percent respectively.