By Chinwendu Obienyi
Proceedings on the floor of Nigeria’s stock market closed on a positive note as equity investors earned about N419 billion at the close of trading in February 2022.
The rally extended the two-year consecutive rally of Nigerian stocks, which had closed 2021 with average return of 6.07 per cent, equivalent to net capital gains of N1.278 trillion.
Despite the negative sentiments in global stock markets, the domestic bourse had finished the trading month of January 2022 in the green territory as investors pocketed a gain of N1.94 trillion.
Daily Sun investigations showed that this rally extended last month as the All Share Index – a common index that tracks all share prices at the Nigerian Exchange (NGX) Limited, closed the month at 47,394.53 points as against 46,624.67 points recorded in January 31, 2022.
Furthermore, the aggregate market value of all quoted equities at the NGX – which is the market capitalization, rose from its opening value of N25.124 trillion to close February at N25.543 trillion, representing a face value increase of N419 billion.
According to analysts, the gain recorded in the month under review was down to the impressive returns on investments from companies quoted on the NGX. Although shares of Honeywell Flour, International Breweries and Wapco drove the ASI 0.14 per cent higher on Monday, analysts say they expect the rally to be sustained in the month of March.
Speaking to Daily Sun via a telephone chat, the Managing Director, Crane Securities, Mike Eze, explained that the rally seen in February was due to investors’ (foreign and institutionalized investors) demand for shares.