Nigerian Investors Gained N1.334 Trillion Following Reopening of Land Borders

The Nigerian Stock Exchange (NSE) extended its bullish run last week after President Muhammadu Buhari approved the reopening of four land borders.

Investors traded 1.893 billion shares valued at N17.647 billion in 20,660 deals during the week, against a total of 2.265 billion shares valued at N20.990 billion that exchanged hands in 23,722 transactions in the previous week.

In terms of volume traded, the financial services industry led the activity chart with 1.489 billion shares worth N8.385 billion traded in 10,834 deals. Therefore, contributed 78.65 percent and 47.52 percent to the total equity turnover volume and value, respectively.

The consumer goods industry came second with 106.986 million shares valued at N2.360 billion and traded in 3,447 deals. The services industry came third with a total turnover of 74.754 million shares estimated at N191.833 million in 448 deals.

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Jaiz Bank, First Bank and Niger Insurance led the most traded equities by volume, accounting for 761.866 million shares valued at N1.468 billion in 1,395 deals. The three equities contributed a combined 40.25 percent and 8.32 percent to the total equity turnover volume and value, respectively

The market value of listed equities rose by N1.334 trillion or 7.46 percent from N17.902 trillion it closed in the previous week to N19.236 trillion last week. While NSE All-Share Index expanded by the same 7.46 percent or 2,554.01 index points from 34,250.74 index points posted in the previous week to 36,804.75 index points last week.

The Exchange has now gained 20.55 percent in this final quarter, 5.03 percent in December and 37.12 percent from the year-to-date.

Nigerian stock market rebounded from the previous week’s decline after Buhari ordered the immediate reopening of the nation’s land borders to facilitate commerce with neighboring countries.

Local investors are expecting the move to boost stocks of certain sectors, especially the banking and manufacturing sectors. Also, the rebound in crude oil prices after both the United Kingdom and the United States approved Pfizer COVID-19 vaccine and the almost agreed $900 billion COVID-19 aid by US lawmakers bolstered global confidence and sentiment last week.