Nigerian Stocks Gain N1.29tn as Investors Return to Banking, Oil Stocks

By GLEBM News Desk

The Nigerian equities market gained approximately N1.29 trillion in market capitalisation last week, supported by renewed buying interest in selected banking and oil and gas stocks.

The reports has it that market capitalisation rose to N155.83 trillion, while the NGX All-Share Index increased by 0.81 per cent week-on-week to 241,298.47 points.

The market’s year-to-date return consequently rose to 55.06 per cent.

The recovery followed a period of pressure in the market, with investors showing renewed interest in selected large- and mid-capitalised companies.

Banking and oil and gas stocks were among the major areas supporting the recovery.

However, analysts noted that the gains were concentrated in a relatively small number of heavyweight stocks, while overall market participation weakened.

Separate market data showed that trading volume declined sharply during the week, suggesting that the recovery was driven more by selective buying than broad-based investor participation.

The development comes as investors assess Nigeria’s improving external position, the country’s return to the FTSE Frontier Market classification and the broader outlook for monetary and economic reforms.

source from Guardian