By Samuel Bankole
The Nigerian equity market closed on a positive note Friday, with the All Share Index rising 0.18% to close at 96,579.54 points, reflecting a steady stream of investor confidence.
The market capitalization of equities listed on the Nigerian Exchange (NGX) also increased, reaching N55.478 trillion, up from N55.379 trillion in the previous session.
Trading activity remained robust, with a total volume of 573.961 million units exchanged in 12,754 deals, valued at N31.58 billion. Market breadth was positive, with 27 gainers compared to 25 losers, signaling investor optimism.
The NGX 30 Index, representing the top 30 most capitalized and liquid stocks on the exchange, saw a marginal increase of 0.05%, closing at 3,589.95 points. Market turnover for this index closed with a traded volume of 138.61 million units.
Key Movers and Market Sentiment
Total and Transcorp emerged as the day’s top gainers, reflecting strong buying interest. In contrast, United Capital and Dangote Sugar were among the major decliners, indicating some profit-taking in these counters.
The market’s positive performance was further buoyed by a decline in money market rates. The Overnight (O/N) rate decreased by 0.64% to close at 20.06%, while the Open Repo (OPR) rate fell by 1.75% to 18.11%.
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These lower rates suggest improved liquidity conditions, which typically encourage equity investments.
However, the naira’s depreciation in the Investors’ and Exporters’ (I&E) FX market indicates ongoing pressures on the local currency. The naira was quoted at N1,598.56 to the dollar, down from N1,593.93 in the previous session, reflecting a challenging forex environment.
Weekly Performance, Trends, and Outlook
Over the past week, the Nigerian equity market has demonstrated resilience, with the All Share Index maintaining an upward trajectory. The consistent positive market breadth and investor interest in key sectors, such as consumer goods and industrials, have supported this trend.
The market’s steady performance is attributed to investors seeking value in select blue-chip stocks amid a challenging macroeconomic environment characterized by high inflation and currency volatility.
The Central Bank of Nigeria’s (CBN) recent measures to enhance liquidity and stabilize the naira have also played a role in boosting market confidence.
Looking ahead, the outlook for the Nigerian equity market remains cautiously optimistic. While the recent gains are encouraging, sustained positive performance will depend on several factors, including the central bank’s ability to manage currency volatility, government policy direction, and global economic conditions.
Investors will be closely watching upcoming economic data releases and corporate earnings reports, which could provide further insights into market direction. The interplay between liquidity conditions and forex stability will also be critical in shaping market sentiment in the coming weeks.
(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)
