Corporate Earnings, Others Lift Stock Market by N350bn in August

Despite the economic headwinds and relative low patronage by foreign investors, the Nigerian equities market recorded improved performance in the month of August as investors’ worth appreciated by N350 billion.

Analysis of trading data for August obtained at the Nigerian Exchange Limited (NGX), revealed that the market capitalisation rose from N20.084 trillion at the end of July to N20.434 trillion in August.

Also, the NGX All-Share Index (ASI), which opened the month of August at 38,547.08 basis points, appreciated by 1.74 per cent to closed the month at 39,219.61 basis points on August 31, 2021.

Capital market operators attributed the improved performance of the market to the strong first half (H1), 2021 corporate earnings and improving macro-economic indices shown in the second quarter (Q2) GDP quarter-onquarter growth of 5.01 per cent.

The likes of Zenith Bank, Total Nigeria Plc, among others have released half year (H1) 2021 results with interim dividend pay-out to shareholders.

The analysts added that the recovery in the country’s economic position, offering an insight into what the future holds for the stock market and economy in general.

Speaking on market performance for August, the Vice President of Highcap Securities, Mr. David Andori said the stock market regained lost ground and it replicated the recovery that started in the last quarter.

According to him, the marginal increase is a factor of released results. He explained further that the stock market is expected to maintain the same trend in September considering the fact that the macro-economy conditions are improving with increasing GDP and drop in inflation rate.

“The crude oil price is also high and government visits the market for more bond issuance, “he said.

On his part, the Managing Director, Enterprises Stockbroker Limited, Mr Rotimi Fakayejo, attributed the stock market marginal growth to improved results by listed companies.