NGX: Investors’ Gain N2.827trn on Investments In One Month

Motolani Oseni

At the close of trading activities on the Nigerian Stock Exchange (NSE) for January, investors’ investment increased by N2.827 trillion to close the equities market on a strong positive note in the first month of 2022.

The equities market closed January trading with total Market capitalisation gaining N2.827 trillion to close at N25.124 trillion as of January 31, 2022, from N22.297 trillion recorded during the previous period.

Also, the NGX All-Share Index (NGX) appreciated by 9.15 per cent to close on January 31, 2022, at 46,624.67 basis points, from 42,716.44 points at which it opened for the year.

Most of the sectorial performances were positive as of January 28, 2022. The NGX’s Oil & Gas index recorded the highest rise during the month with a gain of 13.78 per cent. The Banking index followed with a monthly gain of 8.22 per cent, while the NGX Industrial Goods index rose by 2.90 per cent in the month of January.

Others are NSE Pension, Lotus II, NGX 30 and Premium Board, indices recorded a monthly gain of 1.97 per cent, 1.84 per cent, 1.78 per cent and 0.91 per cent, respectively. On the other side, NGX Insurance recorded a monthly loss of 5.76 per cent, while NGX Consumer Goods declined by 2.26 per cent month-to-month as of January 28, 2022.

During the month, BUA Foods Plc was listed on the Nigerian Exchange (NGX) Limited on January 4, 2022. Specifically, 18 billion shares of BUA Foods were listed at N40 per share, adding N720 billion to the NGX market capitalisation.

Capital market analysts stated that January was a great month as the Nigerian stock market started the year 2022 on a bullish note, driven by positive sentiment, a listing of BUA Foods and corporate earnings expectations.

The managing director/CEO of Trust Yields Securities Limited, Mr Rasheed Yussuff stated that a steady increase in global oil price and management of the COVID-19 pandemic, among others have impacted the stock market performance in January.

He predicated the stock market to maintain positive performance in February, stressing that investors are anticipating positive results from listed companies.

According to him, audited results of listed companies will be released between February and March. The audited results will confirm or not confirm if the market going to be positive or witness profit-taking by investors.

“When you see the stock price moving, everyone will expect that listed companies will release impressive 2021 accounts between now and March on the NGX. Because of that expectation, you can expect the stock market to be moving up.

“By March when the audited accounts started coming out, if it confirms investors’ expectations, it will appreciate further. On the other hand, if the accounts are not impressive, then the stock market begins to tumble. It is natural in January that the stock market always appreciates in anticipation of results from listed companies.”

Also, the CEO of Wyoming Capital & Partners, Mr Tajudeen Olayinka attributed the growth in the stock market to investors taking position for dividend payout by listed companies on the NGX.

“The appreciation we are witnessing in January 2022 most times, build-up from December till February. However, for this year, it started very late, the growth in January is expected. Investors are taking a position on companies that consistently pay a dividend”, he said.