The Nigerian stock market maintained its upward momentum today, building on the gains achieved in the previous session.
Investor confidence remained high as the market responded positively to recent news confirming the Central Bank of Nigeria’s directive to conduct forex transactions at market-determined prices.This development has reignited enthusiasm and bolstered trust among market participants, resulting in a two-day rally following a series of positive announcements by the Tinubu administration.
The benchmark All Share Index (ASI) experienced a substantial increase, climbing by 3.13% or 1,816.45 points to reach 59,985.1 points. This surge in the ASI reflects the growing positive sentiment and investor optimism in the Nigerian market.
Furthermore, market capitalization continued its ascent, rising by 3.26% to reach N32.7 trillion. This surge in market capitalization signifies the increased value of listed companies on the Nigerian Stock Exchange.Trading activity witnessed a notable uptick, with the number of executed deals increasing by 15% compared to the previous trading period.
Additionally, the volume of trade rose by 9.28%, indicating heightened market participation and increased liquidity.Notably, more than 10 stocks registered gains of approximately 10%, with Dangote Sugar leading the pack. The positive performance of these stocks further underlines the prevailing bullish sentiment in the market and the growing demand for equities.
Investors Embrace Central Bank’s Forex Policy
Investors have warmly received the news of the Central Bank’s commitment to market-determined forex prices.
This policy shift is expected to enhance transparency and establish a more predictable foreign exchange market. It is anticipated that these measures will attract foreign investors and stimulate economic growth. Market analysts are optimistic about the potential positive impact of this new forex policy. They believe it will contribute to exchange rate stability, mitigate inflationary pressures, and create a favorable business environment.
Meanwhile, ongoing investigations and planned reforms in the financial sector, as well as the recent suspension of CBN Governor Mr. Godwin Emefiele, continue to draw attention and may influence market sentiment.
Investors Eagerly Await Capital Inflows
Investors are increasingly optimistic about Nigerian stocks, anticipating a resurgence of foreign portfolio investment in the equity market.