Despite inflation rate eroding return on investment, the equities on the Nigerian Exchange Limited (NGX) appreciated by N2.08 trillion in November 2022 as investors renewed interest in large and medium capitalised stocks.
Reviewing stock market activities in November, which is the second month in the last quarter of the year, the basic indicators of the Nigerian Stock Exchange (NSE), All-Share Index gained 8.72 per cent to close on November 30, 2022 at 47,660.04 basis points, from 42,716.44 points at which it opened for the month.
Market capitalisation for the period rose by N2.081 trillion to close at N25.959 trillion as at November 30, 2022 from N23.878 trillion at which it opened trading for the month.
The stock market performance in November was driven by investors’ surge in interest in Dangote Cement, Airtel Africa Plc, among other highly capitalised stocks on the bourse.
Looking at stock performance, Dangote Cement saw its price gaining 18.96 per cent to close November trading at N262.30 per share from N220.5 per share it opened for trading, while MTN Nigeria Communications gained 10.97 per cent to close at N218.5 per share from N196.90 per share.
Airtel Africa rose by 13.7 per cent to N1,450.00 per share from N1,275.00 per share as Zenith Bank added N1.9 per share to close at N21.9 per share from N20.00 per share it closed for trading in October 2022.
The stock market, since July 2022, has witnessed dwindling performance on the backdrop of hike in Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN) in its moves to tackle inflation rate and uncertainty surrounding 2023 general elections.
The stock market, in July 2022, plunged by N772billion to N27.163trillion, and in August, it dropped further by N283billion.
In September, the market capitalisation depreciated by N429billion or 1.6 per cent Month-on-Month to N26.451trillion from N26.88trillion it opened for trading and in October, the market was down by N2.57 trillion as escalated global energy and commodity crises triggered massive portfolio realignments.
