Nigeria’s stock market expands the highest at 45.7% YTD as capitalisation hits new high of N20.44Trln
Nigerian stocks are headed for their highest annual gain in seven years riding on low yields in the country’s fixed-income market.
The equities benchmark index in Africa’s largest economy recorded its highest return, rising 45.7 percent this year, the most among 93 equity indexes tracked by Bloomberg.
It’s the world’s best performing stock market year-to-date. Investors’ appetite for riskier assets have remained strong due to persistent low yield on fixed-income instruments, Chapel Hill Denham said in a note to clients on Tuesday.
This has been buoyed by traders positioning for Dangote’s share buyback program due this week.
Equities will continue to outperform bonds in 2021 given the current overstretched fixed-income valuations, according to Chapel Hill Denham.
The Nigerian Stock Exchange (NSE) gained 0.75 percent to 39,092 as of 13:47 p.m. local time, to reach its highest level since June 2018.
The market closed on Tuesday by 0.80 percent to close at 39,110.17 points.
The market cap of equities listed on the NSE hit a new high of N20.44 trillion from N20.28 trillion the previous day.
The total volume traded closed with an exchange of 722.566 million units valued at N4.38 billion traded in 5,042 deals. The market breadth was negative with 19 gainers as against 20 losers.