As Naira strengthens across all markets
Dealers see private sector driven new govt underway
At the official end of the forex market, the Investors and Exporters Window (I&E), the local currency strengthened against the USDollar trading at ?461.17/$1.00 compared to N462.19/$1.00 previous week just as it gain significantly in the parallel market at ?765.00/$1.00 as against N780.00/ $1.00 the previous week.
Also, the Nigerian stock market traded at its 16-year high performance in both market capitalization and index despite the electioneering tension across the nation, a development investment analysts have attributed to optimism over the likely outcome of the Presidential and National Assembly elections in Nigeria last weekend.
While the All Share Index, ASI, close on Friday at 54,949.21 points from 51,251.06 points, the market capitalization hit N29.9trillion representing a year-to-date return of 7.2% or N2.018 trillion from N27.915 trillion.
Many analysts had predicted that the market may follow the usual election year downward pressures, and some weeks between December 2022 and January 2023 recorded some significant bearish trading.
However, buying pressure ahead of 2022 full-year audited corporate financial results amid the uptick noticed in the fixed income market rates and yields kept the market in a mixed performance since begin of this month.
Despite the cautious trading and volatility with market players digesting the latest 2022Q4 Gross Domestic Product, GDP, data, and the current cash crunch, the market closed positively last week just before the tension socked presidential and National Assembly elections at the weekend.
Stock dealers said that the Nigerian Exchange Limited, NGX remaining upbeat on the eve of a major election season is a complete change of pattern in the history of Nigeria’s stock market.
Some market analysts attributed the situation to the change in market’s holding structure, post covid 19 impressive corporate performance, impact of newly listed companies among others.
Market trend and performance this time was also a departure from mixed sentiment in the past election years and seasons, especially on the 2015 and 2019 elections.
The improved local participation of Nigerians, especially institutional investors, high net worth players and savvy retail investors that understand the whole system and perception of politics in Nigeria made the market to remain strong.
