Nigerian stocks post N1.13tn monthly gain, forex reserves up $1bn

Investors in the Nigerian stock market recorded a total gain of N1.13 trillion in January as the market capitalisation of equities rose above N22 trillion.

The country’s foreign exchange reserves increased by over $1 billion to $36.39 billion on January 27 from $35.37 billion on Dec. 31, 2020, according to the Central Bank of Nigeria.

The market capitalisation of equities listed on the Nigerian Stock Exchange closed at N22.19 trillion on Friday, up from N21.06 trillion at the end of trading in December 2020.

The NSE All-Share Index close at 42,412.66 on Friday, up from 40,270.72 at the start of the month.

The ASI and the market capitalisation appreciated by 3.442 percent last week.

All other indices finished higher on Friday with the exception of NSE Oil/Gas which depreciated by 7.25 per cent while the NSE ASeM and NSE Growth Indices closed flat

A total turnover of 2.570 billion shares worth N27.884 billion in 31,466 deals were traded last week by investors on the floor of the Exchange, compared with 4.288 billion shares valued at N25.989 billion that exchanged hands in 32,849 deals a week ago.

The financial services industry (measured by volume) led the activity chart with 1.497 billion shares valued at N12.695 billion traded in 14,324 deals, thus contributing 58.22 per cent and 45.53 per cent to the total equity turnover volume and value respectively.

The conglomerates industry followed with 363.263 million shares worth N821.428 million in 1,722 deals, while the third place was taken by the consumer goods industry, with a turnover of 220.759 million shares worth N3.953 billion in 5,952 deals.

Trading in the top three equities, namely Transnational Corporation of Nigeria, Union Bank of Nigeria Plc and Zenith Bank Plc (measured by volume), accounted for 633.261 million shares worth N5.634 billion in 3,947 deals, contributing 24.64 percent and 20.20 percent to the total equity turnover volume and value respectively.