Expert attributes NGX rally to uncertainties in fixed income securities
The Managing Director, ARM Securities Ltd., Rotimi Olubi, has attributed sustained rally on the Nigerian Exchange Ltd (NGX) to heightened uncertainties in the fixed income space.
Mr Olubi disclosed this in an interview on Tuesday in Abuja, stating that positive earnings performance by some quoted companies continued to the current rally in the stock market.
He predicted that the uncertainties were expected to persist till the third quarter (Q3) when fixed income yield would peak.
He said the development would encourage more inflow of funds into the stock market, stressing that the rally would persist, noting that the stock market was currently thriving due to liquidity flow from the fixed income space.
The NGX All-Share Index recorded a growth of 5.69 per cent in the month of April.
Specifically, the All-Share Index which opened for trading during the period at 46,965.48 rose by 2,673.46 points or 5.69 per cent to close trading on April 29 at 49,638.94.
Also, the market capitalisation which opened for the month at N25.311 trillion inched higher by N1.45 trillion to close at N26.760 trillion on April 29.
However, the NGX All-Share index’s year-to-date (YTD) gain position stood at 16.21 per cent, just as the market capitalisation rose by to N4.02 trillion representing 18.01 per cent growth YTD from the opening value.
On the sectors that would drive the stock market in the coming months, Mr Olubi said that consumer goods, agriculture and oil and gas sectors were likely to be the major drivers.
Speaking on the foreign exchange drivers, he said that multi-listed companies such as Airtel Africa, Seplat Energy and Exchange Traded Funds would drive the stock market rally.
“The recent uptrend in performance in the Nigerian stock market is expected to roll into May, June, and July.
“We expect this to thrive on numerous factors, among which we have uptrend in yields, encouraging earnings performance, setting the tone for a nice full year for some tickers in June.
“There will be a probable surge of investment into emerging markets seeing a likelihood of recession among advanced market economies.
“The uncertainty is expected to persist till early Q3 when fixed income yield should peak,” he said.
(NAN)
More from Peoples Gazette
Economy
Buhari regime will continue to borrow without subsidy removal: Femi Adesina
“You know how much could have been saved if the subsidy was removed and how it could have been diverted to other areas and spheres of national life.
States
Nigerians should shun get-rich-quick syndrome, urges Islamic cleric
The cleric said the trend was worrisome and that parents should be more involved in the upbringing of their wards.
Politics
JUST IN: Fayemi declares 2023 presidential ambition
The Ekiti governor said his decision followed nationwide consultation with elder statesmen.
NationWide
National constitution reform dialogue to hold May 12: Utomi
The confab scheduled for Abuja, would involve ethnic nationalities, religious leaders, political parties and the government.
Uncategorized
NBC fires political reporter Teaganne Finn after plagiarism probe
A review by NBC News discovered plagiarism in 11 articles written by the former political reporter.
Politics
APC must zone presidency to south to avoid ‘self-inflicted’ crisis: Akeredolu
The governor said “It will be disingenuous for anyone to argue against rotation at this period.”
Education
Educationist suggests compulsory attendance, impromptu tests to check truancy
The educationist wants schools to make mandatory attendance of students before and after classes.
