By Peter Egwuatu
LAGOS — The Nigerian stock market rebounded last week as investors recovered N600.153 billion in five trading days in contrast to the N594 billion lost penultimate week.
Specifically, all the stock market performance indicators throughout last week went up, with the market capitalisation, which represents the total value of shares traded on the Nigerian Stock Exchange, NSE, which closed at N9.804trillion on Friday as against N9.204 trillion recorded the penultimate week.
The All share index, another significance performance indicators of the stock market, increased by 1,798.67 points from 29,383.93 points penultimate Friday to close at 27,585.26 points last Friday
Operators had attributed the rebounds recorded in the stock market to the closure of the Foreign Exchange, FOREX, market by the Central Bank of Nigeria, CBN, where Naira was devalued to N198 to a dollar, as well as investors taking advantage of the falling prices of shares.
The CBN had last week closed both the Retail Dutch Auction System (RDAS) and Wholesale Dutch Auction System (WDAS) foreign exchange window, thereby leaving the interbank foreign exchange market as the only official foreign exchange market.
The decision, according to CBN, became necessary given the wide gap between the rates at the CBN official exchange market and the interbank market; a development which analysts said largely fuelled the current speculative activities in the foreign exchange market in the country.
For instance, why Naira was exchanged for N168-N174 at the CBN official market, the rate hovered around N198-N199 at the interbank market last week.
Analysis of the stock market last week shows that the All Share Index gained 0.35 per cent on Friday to close at 29,383.93 points as against 29,282.04 recorded on Thursday.