The Nigerian Stock Market (NSE) posted modest gains on Monday and Tuesday, the same day the Central Bank of Nigeria (CBN), in a move that upset analysts’ expectations, scaled down its monetary policy rate (the rate at which it lends to banks) from 12.5% to 11.5% in an effort to tame inflation and keep recession at bay.
There was a massive rush for stocks in the days that followed, with the gains recorded between Wednesday and Friday totalling N347.292 billion, accounting for 89% of the total N390.317 billion gain reported this week.
There was a positive turnaround on the supply side also as turnover lifted by over 33%, the bigger part of trade volume also recorded following the CBN’s decision, raising hopes of higher liquidity in the days ahead.
Yet, the biggest news for investors probably lies in the fact that the NSE is on course for a reversal of its year-to-date return, which now stands at -1.95%, from negative to positive in the near time, boosting market sentiment.
All the key market performance indicators closed higher. A slightly positive market breadth was recorded this week as 35 gainers emerged against 28 losers. The All Share Index (ASI) simultaneously rose by 2.92%. While the former closed at 26,319.34 basis points, the latter closed at N13.755 trillion.
Trade Volume of 1.567 billion shares worth N20.559 billion was recorded in 17,109 deals this week compared to the 1.139 billion shares valued at N12.692 billion posted in 17,109 deals last week.
On the Activity Chart, the Financial Services sector dominated trade with 1.178 billion shares estimated at N9.180 billion traded in 9,900 deals. Specifically, it added 75.14% and 44.65% to the total equity volume and value respectively. The Consumer Goods sector came next, trading 90.002 million shares worth N1.688 billion in 2,715 deals. The ICT Industry was third, trading 84.667 million shares priced at N5.786 billion in 771 deals.
As regards Index Movement, all indices appreciated save for NSE ASeM Index, which closed flat.
- NSE: Market closes bigger on improving investors’ confidence - September 28, 2020
- Oil prices dip as coronavirus cases surge dims prospect; Bonny Light gains $0.13 - September 28, 2020
- Nigerian govt to privatise NNPC, scrap major oil & gas regulatory agencies under proposed bill - September 28, 2020