Stock Market Sustained Bullish Trend as Investors Jumped on Undervalued Stocks to Take Advantage of Rate Cut
The Nigerian Stock Exchange (NSE) sustained bullish trend on Friday following the Central Bank of Nigeria led-monetary committee decision to lower the interest rate by 100 basis points to 11.5 percent.
The bourse closed in the green to extend Thursday’s gain by 1.28 percent.
The market capitalisation of listed equities rose by N174 billion from N13.581 trillion recorded on Thursday to N13.755 trillion on Friday.
While the NSE All-Share Index gained 1.28 percent from 25,987.13 basis points it closed on Thursday to 26,319.34 basis points on Friday.
Investors traded 335.749 million shares worth N4.277 billion in 4.231 transactions on Friday, up from 359.307 million shares worth N3.873 billion traded in 3,576 transactions on Thursday.
The bourse rose following the reduction in the monetary policy rate to stimulate growth from within. The stocks of businesses responded positively as investors expected cheap loans to bolster activities of businesses and enhance productivity in the near-term.
This, coupled with the substantial dropped in prices of stocks due to COVID-19 and general weak macro fundamental increased the attractiveness of Nigerian stocks to local investors as seen in the past few days with executives from Banks and other listed companies buying stocks to take advantage of the expected increase in value when the result of rate cut start crystalising.
Sterling Bank led the most traded stocks on Friday with 79.578 million valued at N92.314 million. Followed by Zenith Bank with 50.748 million shares worth N878.624 million. See the details below.
Top Traded Stocks