The Nigerian Stock Exchange (NSE) has been ranked second best performing stock exchange in April by Bloomberg following significant rallies recorded in the market in the past weeks.
This is contained in Bloomberg’s “Best Performing Indexes” report.
“As the Exchange sustains remote trading, free flow of information and vibrant market activity, the index has accelerated+16.39% in the past month. Total market capitalization at the NSE now stands at N12.6 trillion as at May 7, 2020.
“Several factors have been identified as the reason for this rally including oil price recovery, the gradual easing of the lockdown in several economies, and the expectation of dividend payments attracting investors to blue chip stocks.
Sectors that have enjoyed significant attention at this time include banking, industrial and consumer goods sectors.
“Furthermore, activity in the equities market has largely been driven by local investors,” Bloomberg said. Analysts have attributed this largely to cheap valuations amidst elevated system liquidity driven by maturities from OMO bills and low yields on fixed income securities.