The Nigerian stock market rebounded on Tuesday as investors’ confidence in the market grew, after plunging N163 billion ($574 million) on Monday.
The Nigerian Stock Exchange market rose N224 billion ($789 million), following the implementation of a new flexible foreign exchange policy, with about 37 stocks making the gainer’s chart.
While analysts and investors have lauded the adoption of the new forex policy as the right move to avert a potential recession and ease economic gridlock created by the previous forex policy, few like Fitch Ratings Inc., have voiced their concerns regarding its implementation and control going forward.
“Establishing the new framework’s credibility will be key to its effectiveness in attracting portfolio flows and FDI to make up for lower oil export receipts,” said Fitch Ratings.
The GSK shares led gainers’ chart, rising 10.20 percent to close at N16.53, while Champion Breweries advanced 9.19 percent to N4.04.
Access Bank share rose 5.17 percent to N6.10, and NAHCO appreciated 4.98 percent to close at N4.22.
A total of 10 stocks plunged in value, top five losers are Trans-national Express Plc, NEN Insurance Company Nigeria Plc, Unity Bank Plc, Caverton Offshore Support GRP Plc and Honeywell Flour Mill Plc.
The Nigerian Stock Exchange All Share Index rallied 2.3 percent to 29,425.40 from 28,725.53. It’s highest since December 2015. The gauge pared its losses this year to 7.3 percent.
The Nigerian Naira gained against the US dollar to close at 284 a US dollar.