On the Nigerian Stock Exchange, equity trading recorded a gain of N2.75 trillion in the last two months (September and October 2020) following investors’ high demand for undervalued stocks.
It was reliably gathered that despite the #EndSARS protest and the attendant losses recorded by many businesses as a result of lootings carried out by some hoodlum, investors were demanding the stocks of companies that were trading at low prices.
Most stocks had hit all-time lows as investors dumped stocks over concerns about the crash in oil pries and the COVID-19 pandemic. With the gradual easing of lockdown and the monetary policies of the Federal Government, the equity market defied the negative impact of the continuous spread of COVID-19 pandemic on the Nigerian economy as investors leveraged undervalued stocks.
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Enhanced by remote trading, the gradual easing of lockdown and monetary policies of the Federal Government, the equity market defied the negative impact of the continuous spread of CODIV-19 pandemic on the Nigerian economy as investors leveraged undervalued stocks.
The stock market ended the to months with unprecedented growth as the market capitalization rose from N13.21tn at the beginning of trading on September 1 to N15.96tn at the close of trading on October 30, 2020. Tis represents a cumulative gain of N2.75tn during the two months under review.
Similarly, NSE All-Share Index grew by 21 per cent or 5,203.56 basis points from 25,327.13 to 30.530.69 index points during the period under review.
Reacting to this development, analysts at Cordros Capital said, “We expect the direction of market performance to be shaped by the ongoing third quarter earnings season as investors look for evidence that the relaxation of lockdown has provided a tailwind for corporate earnings.
Analysts at Cordros Capital reacting to the development said, “We expect the direction of market performance to be shaped by the ongoing Q3 earnings season as investors look for evidence that the relaxation of lockdown has provided a tailwind for corporate earnings.
Speaking during an interview recently, the Director-General, Securities and Exchange Commission, Mr. Lamido Yuguda pledged more accessibility to Nigerians in a bid to attract more investors to the capital market.
He said, “We need to make operations in the capital market as easy as possible. That way, we can attract investments.”
He said, “We need to make operations in the capital market as easy as possible. That way, we can attract investments.”
He also added that local investors should drive the growth of the capital market because as they trust market, they would remain.
