The Nigerian Stock Market, which ended yesterday May 12, 2017, recorded its best post since President Muhammadu Buhari’s election. The All-share index closed the week with a 7.46 percent gain, which is worth N740billion.
It would be recalled that the last time the Nigerian Stock Market recorded such gain was in April 2015 when the All Share index closed at 18 percent gain, which was valued at N2 trillion.
According to Nairametrics, while the 2015 gain was attributed to the frenzy and wave of optimism that followed the election of President Buhari, the latest bump was due to renewed optimism that foreign investors are on their way back into the market. Just like in 2015, the gain lasted for 10 straight days, as the index closed negatively on Friday.
What we observed from the performance of the stock market this week:
- The banking sub-index gained 11.18 percent this week. Nairametrics said that this was expected as banking stocks have long been viewed as being cheap having traded at a price-earnings ratio of under 6x for nearly a year.
- The Consumer goods index recorded strong gains. The index recorded a 13.36percent gain, which is the best this week. This gain could be attributed to the attraction of the index to foreign investors.
- Top gainers were
May & Baker Nigeria Plc
Ecobank Transnational Incorporated
Fidson Healthcare Plc
P Z Cussons Nigeria Plc.
- Top losers
Jaiz Bank Plc
Seplat Petroleum Development Company Ltd
Newrest Asl Nigeria Plc
Neimeth International Pharmaceuticals Plc
B.O.C. Gases Plc
- `The top 10 gainers this week included some of the small capitalised stocks on the exchange.
While Nigeria expects the release of some macroeconomics data next week, industry watchers are wary about whether this rally would last for long. It is expected that some investors might decide to pull out their investments in order to make more profit.