Nigerian Stock Market Sees Modest Gain Amidst Policy Anticipation and Economic Reforms

In a week marked by anticipation of policy statements from fiscal and monetary authorities, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) closed higher after gaining a modest 11 basis points (bps) Week-on-Week (WoW) to settle at 66,464.57 points last Friday.

This positive shift from 66,362.14 points recorded in the previous week demonstrates investor optimism as the nation’s new ministers and apex bank leadership prepare to unveil economic plans to stimulate growth.

With more companies releasing their second-quarter 2023 (Q2’23) financial results and Q3’23 reports expected soon, analysts predict mixed earnings results due to ongoing fiscal reforms and foreign exchange challenges.

Also, the Naira’s crossing of the N1,000/US Dollar threshold has raised concerns, hence why investors are urged to make prudent investment choices as uncertainty rises across the board.

Market analysis shows investors gained N179 billion as market capitalization reached N36.510 trillion from N36.331 trillion, resulting in a Year-to-Date (YtD) growth of 29.89%.

The weekly market breadth stood at 1.11x, with 40 advancing stocks and 36 declining ones.

Investdata Consulting analysts foresee mixed sentiment in the near term as investors engage in bargain hunting and portfolio repositioning ahead of Q3 corporate earnings reports.

The reconvening of the Central Bank of Nigeria’s monetary policy meeting is also in focus.

Comercio Partners, on the other hand, anticipates a calm start to the week. As Nigeria’s economic reforms and policy pronouncements gain momentum, the market appears poised for more significant changes that could guide investors’ decisions in the final quarter of the year.