High demand for equities of banks, following investors' anticipation of improved results from some of the banks for the 2013 year, assisted the Nigerian stock market to extend its bull run for the second day on Tuesday.
The market, which began the week on Monday with a growth of 1.1 per cent contrary to bearish expectations, recorded a higher growth on Tuesday rising by 1.17 per cent.
However, the positive performance recorded on Tuesday was driven by the banking stocks spurred by high demand by investors,. For instance,
The gains by the banking stocks lifted the NSE Banking Index by 4.1 per cent, while the NSE Insurance Index gained 1.8 per cent. NSE Insurance Index positive trend resulted from gains by
In all, 42 stocks appreciated compared to 18 that depreciated.
However, they added that, current prices make the expected dividend yields on these banks ever more attractive at an average of 8.6 per cent, saying they believe that investors will reward banking stocks with impressive performance with positive sentiments.
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