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Nigeria’s equity market ends week on positive note as naira weakens on I&E fx window

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By Samuel Bankole

The Nigerian equity market concluded the week on a positive trajectory as the All Share Index (ASI) saw a marginal increase of 0.09%, closing at 99,925.29 points on Friday.

This uplift in the ASI contributed to an expansion in the market capitalization of equities listed on the Nigerian Exchange (NGX), which rose to N56.527 trillion from the previous close of N56.474 trillion.

Trading activities also saw substantial engagement, with the total volume of shares traded amounting to 318.1 million units, valued at N4.95 billion across 7,302 deals.

Market breadth remained positive, with 32 gainers outpacing 17 losers, indicating a broadly optimistic sentiment among investors.

The NGX 30 Index, which tracks the top 30 companies in terms of market capitalization and liquidity, posted a modest increase of 0.15%, closing at 3,700.52 points compared to 3,694.81 points in the previous session.

This rise was bolstered by strong performances from major players such as Guinness Nigeria Plc and Lafarge Africa Plc, which emerged as key gainers.

Conversely, United Capital Plc and United Bank for Africa (UBA) Plc were the notable laggards of the day.

READ ALSO: Nigeria’s GDP growth rate shows mixed performance in 2023

Market turnover for the NGX 30 Index registered a traded volume of 177.41 million units, reflecting sustained investor interest and trading activity in the top-tier stocks.

In the money market, the Overnight (O/N) rate experienced a significant decrease, dropping by 4.91% to close at 26.25%, down from the previous close of 31.16%.

Similarly, the Open Repo (OPR) rate fell by 5.02%, ending at 25.63% compared to the prior rate of 30.65%. These reductions indicate easing liquidity conditions in the interbank market.

In the foreign exchange market, the naira depreciated against the US dollar at the Investors and Exporters (I&E) FX window, with the dollar quoted at N1,482.72, down from the previous rate of N1,476.24.

This depreciation highlights the ongoing volatility and pressure on the local currency amid persistent demand for foreign exchange.

The Nigerian equity market’s marginal gain, coupled with positive market breadth, signals a cautious optimism among investors.

However, the depreciation of the naira and fluctuating money market rates underscore the challenges facing the broader economic landscape.

As the market navigates these dynamics, investor focus remains on key economic indicators and corporate earnings reports to gauge future market direction.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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