Nigeria’s All Share Index hits fresh highs

Nigeria’s All Share Index has seen a significant upward trend in recent weeks, reaching highs not seen since June this year. The market closed at $34,652, marking a 1.86% increase. This surge in the stock market can be attributed to the steady stream of gains recorded on the Nigerian Stock Exchange (NSE) in recent weeks. Aigboje Higo, the Managing Director at Capital Bancorp, joined CNBC Africa to discuss the trading day and share insights on what the rest of the week could hold for investors in stocks. Higo highlighted the positive start to the week, noting the market's impressive performance. He mentioned that the market had experienced double-digit growth in May and June, with a 3% growth in the All Share Index (ASI) by the end of July. The upcoming half-year results are expected to further boost the market, along with the continuous decrease in inflation figures over the past five months. Transcorp, a company that has shown a significant turnaround from losses in 2016, released encouraging results that are likely to generate investor interest. The positive results from Transcorp and other companies are indicative of a better environment and improved performance across various sectors. Higo expressed optimism regarding the earnings season and its potential to keep the market on an upward trajectory for the rest of the quarter. He anticipated that the release of banks' audited accounts would contribute to the market's growth, especially for stocks outside the banking sector showing promising results. While discussing potential factors that could negatively impact the stock market, Higo mentioned the fixed income market dynamics and the Monetary Policy Committee (MPC) decision scheduled for the week. He echoed the general expectation that the Central Bank of Nigeria (CBN) would maintain the current policy parameters, considering the gradual economic improvement and the possibility of future interest rate reductions. In terms of investment recommendations, Higo pointed out several stocks that investors should consider, including Dangote Cement, Flour Mills, Zenith Bank, GT Bank, Access Bank, and UBA. He also highlighted the search for dividend yield, emphasizing the importance of considering both interim dividends and potential capital gains for long-term investment strategies. Overall, the positive performance of key stocks and expectations of strong earnings results have set a bullish tone for the Nigerian stock market. With favorable economic indicators and improving business environment, investors are optimistic about the market's growth prospects in the coming weeks.