Here is your Nigerian Stock Exchange News for Last Week
The Nigerian Stock Exchange gained N350 billion last week as investors continue to buy stocks following the reduction in interest rate by the Central Bank of Nigeria.
The Nigerian Stock Exchange market capitalisation expanded by 2.55 percent or N350bn to settle at N14.105 trillion last week. While the Nigerian Stock Exchange Index, NSE All-Share Index, appreciated by 2.53 percent to close the week at 26,985.77 basis points.
During the four trading week, investors traded a total turnover of 1.532 billion shares worth N16.901 billion in 17,882 deals, against a total shares of 1.567 billion valued at N20.559 billion that exchanged hands in the previous week.
Sectoral performance showed the financial services industry led in terms of volume traded with 1.292 billion shares worth N10.562 billion transacted in 10,046 deals. Therefore, the sector accounted for 84.29 percent and 62.49 percent of the total equity turnover volume and value, respectively.
The conglomerates’ industry came second with 62.395 million shares worth N89.205 million in 453 deals. In the third place was the industrial goods industry with a total turnover of 55.168 million shares valued at N2.976 billion exchanged in 1,752 deals.
The top three most traded stocks during the week were Zenith Bank Plc, Sterling Bank Plc and United Bank for Africa Plc. The three accounted for a combined 815.646 million shares worth N7.311 billion in 4,461 deals and contributed 53.22 percent and 43.26 percent to the total equity turnover volume and value, respectively.
The Nigerian Stock Exchange Market capitalisation and the Nigerian Stock Exchange Index continues to rise due to the surge in local investors jumping on undervalued stocks with strong fundamentals following the reduction in the nation’s monetary policy rate by 100 basis points to 11.5 percent.
Stock investors are projecting positive outlook in the near-term as they anticipated that an increase in liquidity due to cheap loan will boost stocks of businesses, especially banks and manufacturing companies.
The Central Bank of Nigeria led Monetary Policy Committee had said there is a need to stimulate growth from within following global distruption of supply chain by COVID-19.
Therefore, the apex bank continues to cushion the economy with capital injection in the form of inteventions.