Stock market investors raked capital gains amounting to N1.013 trillion in the month of November this year, just as they are positioning for the seasonal trends this month. The market capitalisation which represents the total worth of investment on the Nigerian Exchange Limited, NGX closed in November at N39.051 trillion from N38,038 trillion at the end of October 2023. Analysts have opined that despite the low inflow from foreign investors, effective coordination of the fiscal and monetary policies will reduce policy mismatch and summersaults, while promoting a realistic economic reforms, structural adjustments will help boost the market forward. Meanwhile, analysis of the market Week-on-Week, WoW, showed that the stock market gained 0.3% as represented by the NGX All Share Index, ASI which surged to 71,419.87points from 71,230.48 points the previous week. Consequently, the market gained 39.4% Year-to-Date. Trading activity was positive, as the total traded volume and value increased by 4.9% WoW and 70.5% WoW respectively.
The sectoral performance was mixed, following gains in the Banking Index which rise by 1.9%. and Oil and Gas Index 6.0% while the Insurance Index declined by 2.0%. Industrial Goods Index dropped by 1.2% and Consumer Goods Index 0.5%.
Commenting on the market development, analysts at Cordros Research stated: “Given the lack of notable positive catalysts to stimulate sentiments, we expect cautious trading to persist in the domestic bourse next week. Nonetheless, we reiterate the need for investors to seek positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings”
Commenting on market outlook analysts at InvestData Consulting Limited, said: “We expect a mixed sentiment and bull run, as market players interpret happenings globally, fixed income yield environment, Central Bank of Nigeria, CBN policy outlook, earnings report and weak economic data, coupled with portfolio repositioning ahead of the December seasonal trends and expectations in the midst of financial market reset.
”This is given that oil price in the international market has continued to oscillates and smart money are trying to rotate their positions as dividend growth possibility and upside potential of undervalue stocks make the market attractive at this point.
”Meanwhile, given the recent bull-run, profit taking and correction are evitable, being a regular behaviour of stock markets. Any price correction at this phase of market rally will support the upside potentials.
”This is especially as many fundamentally sound stocks remain underpriced, while the dividend yields of major blue-chips continue to look attractive, despite the recent rally.”
Source: https://www.vanguardngr.com/2023/12/investors-gain-n1-01trn-in-nov-position-for-seasonal-trends/