Equity trading on the floor of the Nigerian Exchange Limited (NGX) recorded a gain of N5.639 trillion during the half-year ended June 30. As investors continue to increase their buying pressure, especially on blue-chip stocks. Positive sentiments had returned to the local bourse as the release of full-year 2021. And also Q1’22 corporate earnings bolstered buying interests in dividend-paying stocks.
The Managing Director, Crane Securities, linked the rally to low yield in the money market instruments and liquidity overhang. And that makes it practically difficult for investors in the fixed income sector to factor in current high inflation rate.
Pension Fund Administrators (PFAs) and other investment companies that pitched their tent in the fixed income market. This is due to lull in equities have currently increased their stake in the stock market to ensure guaranteed investment return and capital appreciation.
Vice President of Highcap Securities Limited, David Adonri, attributed the growth to high crude oil price. He also impressively first-quarter results released so far by listed firms.
He said the market has been in a downturn for a while and this presented opportunities for bargain-hunting, which boosted demand for several stocks considered undervalued.