Investors returned in strong numbers to the Nigerian stock market on Tuesday as expectations of half-year corporate earnings and interim dividend announcements pushed equities higher.
The revived purchasing interest helped the market rise by N1.86 trillion, indicating greater confidence in banking equities and other large-cap firms.
Investors are increasingly positioning themselves ahead of the announcement of financial results by leading firms, especially big banks. The News Chronicle reports that many hope to profit from potential dividends.
The ongoing demand contributed to growth in important industries including finance, consumer goods, oil and gas, and manufacturing.
Rising from N150.271 trillion to N152.135 trillion, market capitalization surged 2,905.05 points to finish at 237,083.28 on the NGX All Share Index.
Among the best-performing stocks were Cadbury Nigeria, Zichis, and NAHCO; Dangote Cement, MTN Nigeria, Aradel Holdings, and WAPCO also showed significant gains. On the losing side were Consolid Hall Holdings, FTN General Insurance, Transcorp Express, and Ecobank Transnational Incorporated.
Though analysts anticipate some profit-taking following the sharp market increase, they think the rise shows fresh bargain hunting and optimism about excellent business results.
