Investors gain N1.8 trillion in July | The Guardian Nigeria News – Nigeria and World News

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Despite the foreign exchange crisis, insecurity and other macroeconomic challenges, in the country, coupled with uncertainty in the global economy, the stock market gained over N1.8 trillion in July.

The uptick was propelled by earnings and dividend declarations from quoted companies, in addition to insider dealings among companies as directors and related parties consolidated their positions in a show by such investors of their belief in the inherent values of such companies, as well as sustained positive reactions to the ongoing reforms by President Bola Tinubu.

A review of market performance last month indicated that the Nigerian Exchange Limited (NGX) benchmark all-share index, which opened the trading month at 60,968.27 points, closed at 64,337.52 points, representing a 25.53 per cent growth in the month under review.

Also, market capitalisation rose by N1.814 trillion from N33.197 trillion to N35.011 trillion.There were also better-than-expected corporate earnings, higher dividend payouts and relatively improved liquidity as fixed income yields were not stable in the face of soaring inflation which supported buying interests and flow of funds into the equities space.

Recall that a total turnover of 2.854 billion shares worth N37.645 billion in 41,547 deals was traded by investors on the floor of the Exchange last week Friday. The high traded volume and mixed sentiment experienced during the month reflected the buying interests of majority shareholders and the activities of institutional investors as they sought to hedge against inflation on the mixed outlook for fixed income rates and yields.

This followed the fact that the second quarter (Q2) performance of some quoted companies beat the inflation rate, raising hopes of better earnings that will support price and payout at the end of the financial year.

Given the outcome of the Monetary Policy Committee meeting in the month under review, the prevailing mixed economic data, as well as more corporate earnings now more attractive, as analysts believe that positive earnings surprises and possible interim dividend declarations from companies would continue to spur increased bargain-hunting activities on the bourse.

They also added that profit-taking activities on stocks that have experienced substantial appreciation might be possible. For instance, analysts at Codros Capital said: “In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market”.

Meanwhile, at the close of transactions yesterday, market capitalisation of listed equities fell by 1.10 per cent to N35.011 trillion from N35.402 trillion reported the previous day.

The All Share Index (ASI) also depreciated by 718.87 basis points to 64337.52 points from 65056.37 points reported the previous day.
The downturn was impacted by price depreciation in large and medium capitalised stocks amongst which are: MTN Nigeria, Guinness, NASCON, Dangote Sugar Refinery (DSR), Eterna, NAHCO and PZ Cussons.

As measured by market breadth, market sentiment was positive, 49 stocks depreciated while 19 constituted the gainers chart. Six companies Dangote Sugar Refinery, Sovereign Trust Insurance, Ecobank Transnational Incorporated, Livestock, NPF Micro Finance Bank and Caverton declined by 10 per cent each, to close at N27, 63 kobo, N15.30 kobo, N1.89 kobo, N1.80 kobo and N1.17 kobo.



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