NGX Key Performance Index Makes New Levels Amidst Corporate Earnings, Anxiety Over Polls

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r indexes of Nigeria’s stock market have been under increased buying pressure so far in this month of earnings inflow and general elections, despite the seeming profit taking in some stocks and cautious trading by traders. Market players are repositioning in high dividend paying stocks ahead of their corporate actions, a situation that has supported the new levels of the index and the recovery that started since November after the pullback due to monetary policy tightening by the Central Bank of Nigeria (CBN) to fight inflation.
As you can see in the chart below, some equity prices had broken out their 52-week high and others retracing up from their recent pullback after profit taking to support the new 16-year high of the benchmark index, as it heads towards the 55,000 basis points’ psychological line on the strength of expected company earnings and dividend announcement in the new week and month after the first set of the general elections. The market has remained in the bullish channel that signalled an upbeat, but on a declining volume in the last three weeks despite on relatively above traded volume.

NGX Benchmark Index Weekly Chart (Opening Chart)

NGXASI Daily Chart