By Nkiruka Nnorom
The Nigerian equities market recorded a strong rebound last week following significant interest in the banking stocks and three other highly capitalised stocks – Dangote Cement Plc, MTN Communication Nigeria Plc and BUA Cement Plc – leading to 5.6 percent returns to the investors, week-on-week.
The renewed interest also led to N695 billion gains to the investors after the market advanced in all the five trading days of the week.
Specifically, the Nigerian Stock Exchange, NSE, All Share Index (ASI) rose to25, 204.75 points on the back of 23.4 percent returns in BUA Cement Plc and five percent and 4.5 percent increases in MTN and Dangote Cement Plc shares respectively.
Similarly, the market capitalization of all listed equities rose to N13.136 trillion from N12.441 trillion in the previous week.
Also, performance across all sectors was positive. The industrial goods sector advanced the most, appreciating by15.5 percent, followed by the banking sector with 7.2 percent increase, while the oil and gas, insurance and the consumer goods sectors advanced by 4.9 percent, two percent and 0.9 percent respectively.
Analysts opined that the rebound was occasioned by rebalancing in the oil market.
According to analysts at United Capital Plc, a Lagos-based investment banking firm, “the recovery in share prices is driven by rebalancing in the oil market which has resulted in a 94 percent rebound in oil prices from $18 per barrel to about $35 per barrel within a month and increasing indications that governments around the world will reopen their economies regardless of the anxiety around COVID-19.”