Nigerian stock exchange(NSE) gains N354bn

The Nigerian Stock Exchange All-Share Index on Wednesday had a huge return since the beginning of this year.The market capitalisation appreciated by N354bn to close at N9.706tn from N9.352tn on Tuesday, while the NSE ASI closed at 28,260.61 basis points from 27,231.50 basis points the previous day.

A total of 474.402 million shares worth N3.503bn exchanged hands in 5,260 deals on the floor of the NSE on Tuesday.

The financial services and industrial goods sectors were the biggest beneficiaries of the renewed investor interest as they gained 589 basis points and 416 points. 

Analysts at Vetiva Capital Management Limited said, “Given the strong demand observed in today’s (Wednesday) session as indicated by market breadth, volume and value, we see room for further gains in Thursday’s (today) trading session as the MPC’s decision to adopt a flexible exchange rate continues to whet investor appetite for stocks across sectors.”

Bond prices also rose as traders bought debt to cover positions taken before the central bank decision as they had expected the main rate to stay at 12 per cent to boost the country’s economy in view of slowing growth.

However, the naira remained flat against the United States dollar at the parallel on Wednesday as news over the adoption of a flexible exchange rate policy by the CBN created uncertainties in the forex market.