Santa comes early for Nigeria stock buyers

Investing in value counters ahead of full year results and corporate incentives like dividends, Nigerian equities investors appear to be anticipating the much-anticipated “Santa Claus Rally” earlier this year.

A Santa Claus rally is an extended period of market growth that takes place in the run-up to Christmas. The majority of people believe that these rallies take place in the week preceding the Christmas break, while some see patterns that extend from Christmas Day to January 2.

Nigeria’s stock market had its fourth straight increase of the week on Thursday, rising 0.22 percent. The market has increased 1.28 percent this week and 1.53 percent month-to-date (MtD).

The market’s benchmark performance indicator has also this week crossed the 72,000 market while the year-to-date (YtD) return has risen to +41.38percent.

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At the close of trading on Thursday December 14, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation increased further from preceding day’s 72,299.79 points and N39.563trillion respectively to 72,455.83 points and N39.649trillion.

Infinity Trust Mortgage Bank led the league of gainers that pushed the market higher on Thursday after its share price rose from N2.34 to N2.57, adding 23kobo or 9.83percent. It was followed by that of John Holt which increased from N1.85 to N2.03, adding 18kobo or 9.73percent. Also, Ikeja Hotel rallied from N4.35 to N4.75, up by 40kobo or 9.20percent, while E-Tranzact International went up, from N6.50 to N7, adding 50kobo or 7.69percent.

Access Corporation, FCMB, Zenith Bank, UBA and Fidelity Bank were actively traded stocks on Thursday as investors in 6,845 deals exchanged 446,582,797 shares valued at N7.255billion.