Markets roundup (Feb 25): Stocks Rally, Naira in ‘Dead Cat Bounce’
Stocks: Nigerian Stocks rallied on Thursday as improved sentiment led to gains. The benchmark NSE All Share Index gained 159.39 points to end trading at 24,042.73 points.
Market Capitalisation similarly increased by N54.81 billion to N8.26 trillion.
Naira: The naira fell against the dollar on the parallel market on Thursday as speculators took advantage of recent gains to mop up dollars, creating fresh scarcity.
The naira was quoted at N350 to the dollar on Thursday, weaker than its N300 per dollar close the previous day.
The naira remains flat around the 197.50 peg rate on the official interbank market, where the central bank introduced curbs last year on access to dollars as a sharp fall in the value of Nigeria’s oil exports triggered an economic and fiscal crisis.
In other words the naira probably just had a dead cat bounce. Nairametrics expect the yoyo to continue until either Brent crude rebounds to $50 per barrel or the CBN Governor comes out with a FX policy.
Upcoming Market events
Niger Delta Exploration and Production Plc. [“NDEP”] will be featured in the February edition of the NASD Analyst Call sessions. The details are as follows:
Date: Monday, 29 February 2016
Venue: NASD Plc, 9th Floor UBA House, 57 Marina, Lagos
Time: 12 pm