NGX gains N982bn in October amid investors’ interest in banking, others

Motolani Oseni

The Nigerian Exchange Limited (NGX) equities market in October closed on a bullish sentiment, appreciated by N982 billion, amid sustained investors’ interest in banking shares, Oil & Gas, among others.

Specifically, the market capitalisation rose by N982 billion to close the October trading sessions at N21.938 trillion from N20.956 trillion at which it opened for the month.

Also, the equities market all-Share index gained 1,817.43 basis points or 4.52 per cent to close at 42,038.60 points on October 29, 2021, from 40,221.17 basis points at which it opened for the month.

Analyzing various sector indices, the NGX’s Banking index recorded the highest gain during the month with 10.66 per cent. NGX Oil & Gas index followed with a gain of 6.43 per cent, while NGX Pension index appreciated by 6.16 per cent.

In fact, no fewer than 30 indexes rose by 4.34 per cent; the NGX Industrial Goods index rose by 4.21 per cent, while the NGX Insurance index appreciated by 3.98 per cent. NGX Premium, Lotus II and Consumer Goods indices recorded a monthly gain of 2.85 per cent, 1.17 per cent and 0.41 per cent, respectively for the month of October 2021.

Speaking on the bullish sentiment during the period under review, the Chief Operating Officer of InvestData Consulting Limited, Mr Ambrose Omordion, said that the uptrend seen in the composite NGX All-Share index and the positive corporate earnings of listed companies released so far show that the Nigerian economy is still on the path of growth, saying that this is a reflection of the monetary policy stance driving economic activities again through relatively low-interest rates.

Omordion said that “There was also the impact of the recovery in oil prices at the international markets in the midst of a slower economic recovery driven by vaccination and positive buying sentiments among blue-chip and growth stocks.

“These triggered buying interests in the equity space that had been sustained for over four consecutive months of bull-run, as the monthly NGX index action formed a saucer chart pattern that supports an uptrend and market recovery on a higher traded volume and positive breadth.”

The managing director, Afrinvest Research & Consulting, Mr Abiodun Keripe, expressed optimism over the last quarter of 2021 equities market performance based on improvement in macro economy environment and pick up in business activities expected to support the equities market.

He noted that the sentiment in the equities market remained strong in the last quarter of the result as it has been dominated by local investors.

Also, the managing director, Highcap Securities Limited, Mr David Adnori, attributed the stock market gain in October to impressive listed companies nine months of corporate earnings and improved macroeconomic conditions.

According to him, the rising price of crude oil also increased demand for stocks on the NGX. The growth may extend to year-end as most Q3 results are fantastic and the steady increase in global oil prices.

He, however, said that “the recovery of the stock market could have been better but insecurity in the nation’s led to hike in inflation rate and investors have to react negatively.”