NGX remains bullish as benchmark index hits 71,900 mark
For the second consecutive day this week, the NGX (Nigerian Exchange Limited) concluded in bullish territory on Tuesday, with the All-Share Index recording a 0.33% appreciation to close at 71,907.26 points. The market is gradually approaching the uncharted territory of 72,000 points.
Equities saw a gain of N130 billion, resulting in a market capitalization closing at N39.349 trillion. Key contributors to the market's growth included stocks like ACCESSCORP, which gained 0.99% with a turnover of N380 million, and GTCO, which had a turnover of N849 million.
Despite the positive momentum, there was a decline in trading volume, decreasing to 319.56 million units from the previous day's 375.32 million units. However, in terms of value, there was an increase to N5.88 billion compared to the previous day's N3.85 billion.
Based on historical data spanning the last 25 years, it has been observed that the peak of seasonality on the NGX typically occurs in December, marked by the phenomenon known as the Santa Claus rally and year-end window dressing. Over this quarter-century period, the NGX closed positively for 17 years and experienced downturns for 8 years. This historical pattern suggests a potential reliability of 80% or more when using seasonal data or cycles for trading. The belief is that trading based on seasonal cycles and trends could be opportune, especially now, as market participants analyze and interpret the economic agenda and statement of intent recently delivered by Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN).