Stocks gain N36bn as investors cheer Nigeria GDP report

By Joy Baba-Yesufu

Nigeria’s equities market opened this week’s trading on a positive note as investors raised bet in the market, sign of optimism following the positive second quarter (Q2) GDP report released by the National Bureau of Statistics (NBS).
The Q2’24 GDP report indicated that the Nigerian economy expanded by 3.19 percent year-on-year (YoY) as against 2.51 percent it was in Q2’23 and 2.98 percent recorded in Q1’24.
At the close of trading on Monday August 26, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation appreciated from preceding trading day’s lows of 95,973.45 points and N55.129 trillion to 96,037.28 points and N55.165 trillion.
Stock analysts had before now retained cautious outlook on the market as market participants hunt for attractive offers across key sectors of the market.
“Expectations of improved GDP growth and easing inflation figures are likely to further bolster sentiment in the equities market. However, we expect to see occasional profit-taking activities, especially given the continued appeal of yields in the fixed income market. Nonetheless, weighing all factors, we project that the local bourse will end the week in positive territory,” Meristem research analysts said in their August 26 note to investors.
“This week, we anticipate the bulls to dominate the local bourse, driven by renewed buying interest. Stocks that have experienced significant declines now present attractive entry points for investors looking to position themselves strategically, particularly on banking tickers that have recently dipped,” Meristem analysts further said.
The market rose by N36billion or 0.07 percent as investors in 9,075 deals exchanged 377,176,127 shares valued at N3.776billion. Stocks like Eterna, Okomu Oil Palm, RT Briscoe, Oando, and Japaul Gold were mostly hunted by investors, pushing their prices higher.
Eterna rose most, from N21 to N23.10, up by N2.10 or 10percent. Okomu Oil Palm increased from N345.30 to N379.80, adding N34.50 or 9.99percent. RT Briscoe moved up from N2.71 to N2.98, adding 27kobo or 9.96 percent. Oando increased from N47.85 to N52.60, adding N4.75 or 9.93 percent, while Japaul Gold rose from N2.26 to N2.48, up by 22kobo or 9.73percent.