Stock investors earn 629 billion naira in November thanks to impressive results and rising oil prices

Investor investments in the Nigerian stock market rose by 629 billion naira in November 2021, following impressive nine-month results from listed entities and improving oil prices.

Renewed investor interest in listed mid and high capitalization and undervalued stocks on the stock exchange also drove the positive returns on investment.

Market cap rose 629 billion naira to close at 22.567 billion naira on November 30, 2021, from 21.938 billion naira that the market opened for trading in November.

Similarly, the NGX All-Share index also appreciated by 2.90%, from the 40,270.72 basis points it opened in early November to 43,248.05 basis points, it closed on November 30, 2021.

Meanwhile, the year-to-date market performance stood at 7.4% gain as of November 30, 2021.

The stock market in 2021 has been faced with the exit of foreign investors, a double-digit inflation rate that discourages investment as well as rising fixed income rates, which have resulted in a drain of liquidity from the market. actions.

A stockbroker and capital markets analyst Mr. Rotimi Fakayejo attributed the growth in the performance of the oil and gas index to the impressive corporate earnings published by listed oil marketing companies, noting that the enactment of the law on the petroleum industry also played a key role in increasing the index in the 10 months under review.

In addition, the Managing Director of Highcap Securities Limited, Mr. David Adnori, attributed the stock market to impressive nine-month listed company earnings and improving macroeconomic conditions.

According to him, the rise in the price of crude oil has also increased demand for shares on the NGX. Growth could extend until the end of the year as most of the third quarter results are fantastic.

He added that “the rebound in the stock market is expected to last until the end of the year due to the steadily rising global oil prices. The recovery in the stock market could have been better, but the insecurity in the country has led to a rise in the inflation rate and investors must react negatively.

InvestData Consulting Limited COO Mr. Ambrose Omordion said that despite volatility and selling pressure in November, the market ended the month on a positive note, ushering in a bullish December then that players continue to reposition their portfolios in line with dividend expectations. for the end of the current year.

He added that “We expect the market to close positively this year, with seasonality and cycles likely to influence stock prices ahead of the year-end window presentation.

“The low volume traded amid the downturns creates new buying opportunities thanks to the third quarter numbers. Additionally, candlestick formation and volume traded during the session revealed that institutional players are not selling but are positioning themselves in blue chip companies as the index slips to light volume.

It’s also worth noting that in a distance market, many players sit on the fence waiting for a breakout or down before jumping into any position. Although many stocks are trading within their buy ranges, a situation that should attract more funds to the stock market, given the dividend yield capable of serving as a hedge against inflation. “


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Steve R. Hansen