By Peter Egwuatu
As Nigerians continue to count their losses to the #EndSARS nationwide protests, buying interest in the stock market surged through the three consecutive days of this week leading to N387 billion gain for investors.
Consequently, a major market indicator, the market capitalization, rose to N15.4 trillion at the close of trading on Wednesday against N14.9 trillion last 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.”