The Nigeria stock market extended weekly profit with N677 billion last week to position the Nigerian Stock Exchange (NSE) as Africa’s best market in terms of return on investment (RoI).
The market closed 7.46 higher last week to see the NSE All-Share Index (ASI) add 1953.83 points and close at 28,192.46.
The market capitalisation closed higher in the same percentage at N9.746 trillion from N9.069 trillion the week opened.
Similarly, all other Indices finished higher during the week with the exception the NSE ASeM Index that closed flat.
A total turnover of 3.255 billion shares worth N28.738 billion in 25,370 deals were traded during the week by investors in contrast to a total of 1.154 billion shares valued at N10.439 billion that exchanged hands the previous week in 16,676 deals.
The record posted in the week is the best performance of the market in the last nine months while the market peaked highest point so far under the administration of President Muhammadu Buhari.
One factor responsible the market appreciation was Moody’s report, which maintained a stable outlook for Nigeria’s banking sector, and predicted that acute foreign-currency shortages in the country were set to ease.
Consequently, the banking sub-index gained 11.18 percent during the week while Nairametrics also noted that ‘the performance was expected as banking stocks have long been viewed as being cheap having traded at a price-earnings ratio of under 6x for nearly a year’.
In addition to the banking industry is the consumer goods index which soared by 13.36 per cent and adjudged the best in the week.
The surge in the consumer sub-sector of the market was accrued to the perceived attraction of the market index to foreign investors who are believed would significantly return invest in the market, even as locals are currently behind the market force.
Market observers have also identified first-quarter company results, which have come in better than market expectations, as a signal that Nigeria’s economy may be starting to recover and also that some foreign investors have begun to return.