By Peter Egwuatu
As Nigerians continue to count their losses as a result of the effect of the EndSARS, the stock market for the three consecutive days of the week gained further traction as buying interest led to the upsurge in major market indices with investors gaining N387 billion in three days.
Consequently, a major market indicator, the market capitalisation rose to N15.4 trillion at the close of trading on Wednesday from N14.9 trillion on Friday. In the same way, the Nigerian Stock Exchange, NSE All Share Index, ASI another major indicator rose by 640.54 points to 29,437.60 points from 28,697.06 points.
Analysts have explained that investors are taking advantage of low price valuation of equities in the market as well as some expected positive earnings in the third quarter, Q3’20 to beef up their investment.
Analysts at InvestData Limited said: “The increasing money inflow to the market will support a breakout and continuation of the recovery move, despite pockets of profit taking along the line. With the earnings season in top gear this week, do not forget your investment goals and exit strategies as you watch the trend. We expect this volatility to continue, as investors position and book profits from the uptrend in the midst of earnings season and expectation of more Q3 earnings reports.”
Analysts at Afrinvest Research said: “We maintain our position that the performance of the domestic equities market would be dictated by the earnings result.”
Meanwhile, analysis of Wednesday trading showed that investors gained N239.0 billion as market capitalisation increased to N15.4 trillion and Year to Date, YtD return improved to 9.7 percent. Also, the ASI rose 158 bases points, bps to 29,437.60 points due to gains in Nestle (10.0 percent), Dangote Cement (2.2 percent) and ETI (+7.6 percent).
Activity level was mixed as volume traded fell 2.7 percent to 375.2million units while value traded rose 59.0 percent to N4.6billion. The most traded stocks by volume were Zenith Bank (46.7 million units), Fidelity Bank (33.5 million units) and Ecobank Transnational Incorporated, ETI (27.5million units) while BUA Cement (N1.0 billion), Zenith Bank (N1.0billion ) and Guaranty Trust Bank (N394.1million) led by value.