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Equities gain N981b in six days

Investors in Nigerian equities have earned more than N981 billion in net capital gains in the past seven trading sessions, making Nigerian stocks some of the most lucrative in the global stock markets.

Benchmark indices for the Nigerian stock market yesterday rode on the back of increased demand across several sectors of the market to a year-to-date return of 4.4 per cent; implying net capital gains of N981.1 billion in the seven trading sessions.

The sustained bullish rally at the Nigerian stock market underlined a positive, though cautious, outlook for the equities by several pundits after the Nigerian market sustained a two-year consecutive positive return.

The continuing rally has built up the net capital gains for investors since 2020 to more than N8.7 trillion.

Nigerian equities had over the past 24 months posted a two-year average return of 56.1 per cent, equivalent to net capital gains of N7.76 trillion over the past two years.

The stock market closed in 2021 with an average return of 6.07 per cent, equivalent to net capital gains of N1.278 trillion.

It had in the throes of the outbreak of the COVID-19 pandemic in 2020 recorded an average return of 50.03 per cent, representing net capital gains of N6.483 trillion.

Yesterday, investors raked in N403 billion in net capital gains amidst bargain-hunting for large-cap blue chips and value stocks. The benchmark index showed an average return of 1.7 per cent.

The strong rally yesterday was driven by influential stocks such as Dangote Cement, Seplat Energy; Guinness Nigeria; BUA Foods and MTN Nigeria Communications.

Dangote Cement, Nigeria’s most capitalised quoted company, yesterday announced that it would be buying back 170 million shares from shareholders between next Wednesday and Thursday.

The second tranche of the share buyback programme would see the company mopping up one per cent of its current issued share capital

Analysts at Afrinvest Securities said they “anticipate that bargain hunting would persist on improved investor sentiment”.

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