Stock Market Gains N659bn

Analysts at Cordros Capital have described Last week's gain at the Nigeria Stocks Market as "well diversified"

In their words: “Last week’s gain was well diversified across the sectors, the oil and gas stocks, perhaps on the news that the force majeure on the Forcados oil export terminal has been lifted rallied the most. Banking stocks on the other hand outperformed on report by Fitch Ratings acknowledging that liquidity pressures have eased for now, for its rated banks.

“Interestingly, both the local and foreign institutional investors are active drivers of the recent rally, and we understand the FPIs encouraged by the improved ease of access to the dollars are keen on their usually preferred consumer goods names, with a few banks, cement, and oil gas companies also on the card.”

They also noted that, “It would appear this week’s circular by the CBN, permitting the Authorized Dealers in the forex market, the I and E window specifically to henceforth sell their excess FCY trading positions among themselves without seeking prior approval, contributed immensely to this week’s equities rally.”

For the week, analysts at Cordros Capital said, “Fundamentally, we note that only a few stocks have much upside from current price level, suggesting that a correction is imminent. That said, with the ongoing rally’s major life battery which is developments in the forex market remaining charged, we think equities will have strong wings to fly.