Investors in Nigeria’s stock market celebrated a substantial gain of approximately N1.411 trillion during the month of August.
This N1.411 trillion was realized despite a series of trading sessions characterized by profit-taking and bargain hunting.
Throughout the review month ended on Thursday, August 31, the market witnessed a commendable surge of 3.44 percent.
According to analysts at Vetiva Research, based in Lagos, “We have observed profit-taking activities in recent gainers, and the rebound in the banking sector proved short-lived, as investors eagerly await the release of H1’23 results from key players such as GTCO, ZenithBank, Access Corporation, and UBA.”
These analysts had also anticipated a continuation of mixed trading sessions.
As August commenced, the market’s All-Share Index (ASI) and equities market capitalization stood at 64,337.52 points and N35.011 trillion, respectively.
However, by the end of the review month, these figures had surged to 66,548.99 points and N36.422 trillion, illustrating the market’s upward trajectory.
In the eight months leading up to August 31, the market had recorded an impressive return of 29.85 percent.
Taking a global outlook for the second half (H2) of the year, analysts at United Capital, also based in Lagos, highlighted the fantastic performance of the Nigerian stock exchange in the first half of 2023.
They expressed optimism regarding a broadly favorable equities market in H2 of 2023, supported by two key factors: the “unification of the exchange rate” and the “advocacy for a lower interest rate environment.”
These factors, they believe, will significantly enhance the earnings performance of listed Nigerian corporations, ultimately bolstering investors’ confidence in listed companies, particularly during earnings seasons (H1-2023 and Q3-2023 earnings season).