Equities investors trade increases by 40.1% to N485.4bn in Q2
Local and foreign investors on the Nigerian Exchange Limited (NGX) traded N485.4 billion worth of shares in the second quarter (Q2) of 2022.
This is a 40.11% increase from the 346.43 billion naira traded in the first quarter (Q1) of 2022.
A data from the exchange noted that the growth in the market value of traded shares was also reflected in the volume, as it gained 143.83% to 54.27 billion in the second quarter of 2022, against 22.26 billion reported in Q1 2022, while transactions on the exchange increased by 8.5% to 320,778 in Q2 2022 from 295,533 reported by NGX for Q1 2022.
The NGX equity market segment in 2022 saw a positive sentiment exchange thanks to investor participation in listed fundamental stocks, leading to the Q2 2022 market capitalization close at 27.94 trillion naira from 25, 31 trillion naira in the first quarter of 2022.
As a result, the NGX All-Share Index appreciated by 10.3% to 51,817.59 basis points in Q2 2022 from 46,965.48 basis points in Q1 2022.
The data revealed that the value of fixed income securities traded increased by 38.7% to 1.01 trillion naira in the second quarter of 2022, from 728.9 billion naira in the first quarter of 2022.
According to data from NGX, the volume of fixed income securities traded increased to 972,206.00 in Q2 2022 from 688,564 in Q1 2022.
Furthermore, the market capitalization of fixed income securities increased from 21.42 trillion naira in the first quarter of 2021 to 22.23 trillion naira in the second quarter of 2022.
CEO, Wyoming Capital & Partners, MrTajudeenOlayinka noted that improved liquidity in the system over the past six months was responsible for the positive performance of the Nigerian stock market.
Other factors driving equity market liquidity, he added, are that “the instant payment of dividends to shareholders electronically (e-dividend) provides opportunities for immediate reinvestment of those dividends, particularly through institutional investors, who manage clients’ funds and portfolios This has not left out other traditional investors, who have benefited from low prices, in the run-up to the end-of-the-financial-year rallies we have seen at the start of 2022.
“Negative real return in the fixed income market and the need to hedge against inflation. The stock market is an inflation-adjusting market, and so some investors who were willing to hedge against inflation, no matter how much downside risk the market posed, decided to bring liquidity back in the stock market.
“The ongoing crash in the crypto market has brought liquidity back to the equity market. It has been said that more Nigerian investors are actively participating in the crypto space, and thus, the sudden, albeit long-predicted, crash in this market has prompted some affected Nigerian investors to cut their losses, for less opportunity. volatile and recoverable in the stock market.
“The availability of derivatives is encouraging more institutional investors to embrace the equity market. Investors can now sell or buy the market at ease. All of these activities bring liquidity to the market.