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Nigerian stock market rose 1.91 per cent to a five-week high yesterday, boosted by demand for stocks in banking and other blue chip firms.
The index, which is down 16 per cent so far this year, firmed up to a level last seen in October, as most bank shares recorded appreciable growth.
Analysts at Afrinvest Securities Limited had said recent CBN restrictions on Open Market Operations (OMO) would restore confidence in the volatile stock market, considering the low stock prices.
“The CBN recently restricted individuals, local corporates, and non-banking financial institutions from participating in both the primary and secondary markets of Open Market Operation (OMO).
“Following this directive, we expect investors’ focus to shift towards equities due to current low prices and attractive dividend yields,” the analysts said.
The key market performance measures, the NSE All Share Index and market capitalisation, rose by 1.91 per cent as market sentiments returned to gaining streaks following investors’ sustained optimism on undervalued stocks.
Consequently, the All-Share Index gained 504 basis points or 1.91 per cent to close at 26,843.11 as against 26,339.11 recorded the previous day while the market capitalisation of equities appreciated by N243 billion or 1.91 per cent to close at N13.067 trillion from N12.821 trillion as market sentiment returned to the green zone.
Meanwhile, a turnover of 624.8 million shares exchanged in 6,426 deals was recorded in the day’s trading.
The premium sub-sector was the most active (measured by turnover volume); with 368 million shares exchanged by investors in 2,623 deals.
Volume in the sub-sector was largely driven by activities in the shares of Zenith Bank Plc and Access Bank Plc.
The banking sub-sector boosted by activities in the shares of GTBank Plc and Sterling Bank Plc followed with a turnover of 105.5 million shares in 2,668 deals.
The index, which is down 16 per cent so far this year, firmed up to a level last seen in October, as most bank shares recorded appreciable growth.
Analysts at Afrinvest Securities Limited had said recent CBN restrictions on Open Market Operations (OMO) would restore confidence in the volatile stock market, considering the low stock prices.
“The CBN recently restricted individuals, local corporates, and non-banking financial institutions from participating in both the primary and secondary markets of Open Market Operation (OMO).
“Following this directive, we expect investors’ focus to shift towards equities due to current low prices and attractive dividend yields,” the analysts said.
The key market performance measures, the NSE All Share Index and market capitalisation, rose by 1.91 per cent as market sentiments returned to gaining streaks following investors’ sustained optimism on undervalued stocks.
Consequently, the All-Share Index gained 504 basis points or 1.91 per cent to close at 26,843.11 as against 26,339.11 recorded the previous day while the market capitalisation of equities appreciated by N243 billion or 1.91 per cent to close at N13.067 trillion from N12.821 trillion as market sentiment returned to the green zone.
Meanwhile, a turnover of 624.8 million shares exchanged in 6,426 deals was recorded in the day’s trading.
The premium sub-sector was the most active (measured by turnover volume); with 368 million shares exchanged by investors in 2,623 deals.
Volume in the sub-sector was largely driven by activities in the shares of Zenith Bank Plc and Access Bank Plc.
The banking sub-sector boosted by activities in the shares of GTBank Plc and Sterling Bank Plc followed with a turnover of 105.5 million shares in 2,668 deals.
