Nigerian Bourse Ranks Second in Bloomberg’s Best Performing Indexes within the Period

Image Credit: bloomberg.com

May 8, 2020/NSE

The Nigerian Stock Exchange has enjoyed significantly rallies in recent weeks, even amidst the global Coronavirus (COVID-19) pandemic. As The Exchange sustains remote trading, free flow of information and vibrant market activity, the index has accelerated +16.39% in the past month and ranks second in Bloomberg’s best performing indexes within the period. Total Market capitalization at the NSE now stands at N12.6 Trillion as at 07 May 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. The NSE is, therefore, set to end the week on a positive note with the All Share Index up +5.79% week-to-date. 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. 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. Investors are, however, advised to adopt portfolio diversification when investing in the capital market to manage risks across asset classes and smooth out the returns of the investment portfolio as a whole.

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