• Wednesday, December 06, 2023
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All Share Index crosses 60,000 psychological level as banking stocks rally

All Share Index crosses 60,000 psychological level as banking stocks rally

The Nigeria stock market’s All Share Index (ASI) crossed 60,000 psychological points on Tuesday, pushing the market’s year-to-date (YtD) postive return to +17.28 percent.

This comes on the heels of banking stocks heading for a six year high as investors cheer the Central Bank of Nigeria’s (CBN) foreign exchange (FX) liberalisation. Investors have also raised bets on Oil and Gas stocks since the removal of petrol subsidy.

Tuesday’s equities trading data showed that NGX Banking Index has risen this year by 51.06 percent, while NGX Oil and Gas Index is up YtD by 66.45 percent. In addition, NGX Insurance Index has increased by 58.80 percent while NGX Consumer Goods Index is up by 51.05 percent.

The market strengthened its journey into the green zone on Tuesday by 1.30 percent as the record positive sentiment persists on the Nigerian Bourse. This month, the market has risen by 7.78percent.

Read also: Inflation pushes additional 4m Nigerians into poverty – World Bank

The Nigerian Exchange Limited (NGX) All-Share Index and its equities Market Capitalisation which stood at 59,338.76 points and N59.338trillion respectively on Monday increased to 60,108.86 points and

Access Corporation, GTCO, UBA, Sterling Bank and Zenith Bank were actively traded stocks on Tuesday as investors in 9,463 deals exchanged 763,696,265 shares worth N12.533billion.

“What should investors do about Naira exchange rate liberalisation? The last time the official foreign exchange rate and the parallel market rate converged was in 2017. Are there lessons to be learned from that experience?

“We think that there are, if one is careful with the data. Bank stocks look like beneficiaries as well as the stock market overall,” said Lagos-based analysts at Coronation Research.