Stocks gained over N700bn despite activities of profit takers

Despite negative close (-0.46) seen on the last trading day of the week ended Friday October 9, Nigeria’s equities market still increased in value by N747billion week-on-week (WOW).

More investors moved into Custom Street, Lagos to buy stocks in search for alpha returns because of sustained depression of yields in the fixed income space, coupled with the dearth of attractive investment options.

The week’s record gain was largely driven by activities of investors who chose to increase their stakes in banking, industrial goods, consumer goods, oil and gas, and insurance stocks.

Despite pockets of profit taking activities analysts expect that the positive sentiment in the equities market will be sustained this month as investors position for third-quarter (Q3) 2020 earnings publications.

As returns from equities go back to pre-covid-19 levels, some analysts are of the view that the market is set for a positive close for the year.

As at 2:30pm trade closing time on Friday, Nigeria stocks posted positive year-to-date (ytd) return of +5.86percent.

The stock market of Africa’s largest economy which had witnessed two days of rally at the beginning of the review week later recorded increased profit taking activities in the remaining three days.

At the close of the week’s trading, the Nigerian Stock Exchange (NSE) All-share Index (ASI) appreciated by 5.30percent from 26,985.77 points to 28,415.31 points while the market capitalisation of listed stocks increased from N14.105 trillion to N14.852trillion.