Nigerian equity market rally with 0.33% uptick as naira gains vs dollar

By Samuel Bankole

In a notable uptrend, the Nigerian equity market concluded on a positive trajectory on Tuesday ahead of Workers Day on May 1, showcasing resilience amidst economic dynamics.

The All Share Index (ASI) notably surged by 0.35 percent, culminating at an impressive 98,225.63 points, showing growing investor confidence.

The market cap of equities listed on the NGX witnessed a substantial uptick, ascending to N55.553 trillion from its previous standing of N55.404 trillion.

This positive shift signals a robust performance and affirms the market’s vitality.

Trading activity remained vibrant, with a total volume of 552.209 million units valued at N14.92 billion exchanging hands across 9,350 deals.

This buoyant activity underscores sustained investor interest and engagement in the market.

Market breadth leaned favorably towards gains, with 28 gainers outpacing 18 losers, indicating a prevailing optimistic sentiment among investors.

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The NGX 30 Index also experienced an upward trajectory, climbing by 0.31 percent to close at 3,634.51 points, reinforcing the overall bullish sentiment.

Key players in the market included FBNH and MTN Nigeria, emerging as significant gainers, while Dangote Sugar and Lafarge Africa faced marginal declines.

These fluctuations mirror the intricate interplay of market forces and sectoral dynamics.

Turning to the money market, the interbank lending rate observed a 33 basis point uptick, driven by tightened system liquidity attributed to dollar sales and the issuance of short-term debt paper by the regulatory bank.

The overnight (O/N) rate rose by 0.33 percent, closing at 31.00 percent, while the open repo (OPR) rate escalated by 0.88 percent, reaching 30.21 percent, underlining the evolving liquidity landscape.

In the foreign exchange domain, the naira showcased resilience, appreciating against the dollar, with the latter quoted at N1,390.96, compared to the previous close of N1,419.11 at the I&E FX market.

This development reflects positive sentiments surrounding currency stability and market dynamics.

Amidst evolving market conditions, Nigerian equities continue to exhibit resilience and attractiveness, offering promising avenues for investors seeking lucrative opportunities amidst dynamic economic landscapes.