Stock market gains N2.7tn in two months

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Equity trading on the Nigerian Stock Exchange recorded a gain of N2.75tn in the last two months following investors’ high demand for undervalued stocks.

The PUNCH gathered that despite the #EndSARS protests and the attendant losses recorded by many businesses due to lootings carried out by hoodlums, investors were demanding the stocks of companies that were trading at low prices.

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 showed resilience, ending the two months with unprecedented growth as the market capitalisation rose from N13.21tn at the beginning of trading on September 1 to N15.

“With yields on risk-free assets declining to sub one per cent level, we believe it is increasingly compelling for risk-averse investors to rotate their portfolio towards equities. Hence, we expect the bulls to maintain dominance in the week ahead.”

 

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