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Gains in Airtel, MTN Nigeria, Others Drive Stock Market by N317 5bn
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The Nigeria Exchange Group Limited (NGX) started 2021 on a good note as the last trading day of 2020 earned the local bourse a warm ovation by reflecting over 50% growth year–to–date.
Although the NGX began the year with an air of optimism, its performance has been beset by a number of macroeconomic factors that have influenced the investment decisions of retail and institutional investors and affected local and foreign direct investments.
In the first half of the year 2021, the All-Share Index (ASI) of Nigeria’s stock market declined by 7.87% from 41,147.39 to 37,907.28 points.
Despite the negative movement, 54 of the 168 companies listed on the exchange appreciated with the top 10 stocks gaining no less than 61% year-to-date. It is worthy of note that most of the stocks on the list of the best-performing stocks are insurance companies and none are banks.
The Nigeria Exchange Limited (NGX) ended the month of June on a positive note as bulls dominated proceedings in the market on the 30th of the month.
The ASI (All share Market Index) appreciated by 0.71% to close at 37,907.28 and the Market cap increased by N138 billion.
Nestle Nig Plc led the 20 gainers against 16 losers to close the day, taking the market breadth to 1.25x, reflecting a bullish market. However, month-on-month, the Nigerian Exchange ASI depreciated by 1.38% from 38,437.88 points in May 2021 to 37,907.28 in June 2021.
The situation was largely brought about by investors continuing to short their investments in equities to take positions in the Fixed Income space where rates are rising, in a bid to take shelter from the onslaught of Nigeria’s inflation rates.
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