Stock market gains ₦390 billion in second day of bullish run

The Nigerian stock market sustained its positive momentum on July 15, as investors gained ₦390 billion in value, pushing market capitalisation to ₦156.239 trillion.

The Nigerian stock market sustained its positive momentum on July 15, as investors gained ₦390 billion in value. This marks the second consecutive day of bullish performance, pushing the market capitalisation to ₦156.239 trillion. First Holdco led the gainers’ chart, reflecting sustained buying interest in selected stocks despite a slight overall dip in the All-Share Index.

The rally reflects growing investor confidence in the Nigerian economy. The government’s reforms, including the unification of the exchange rate and the removal of fuel subsidies, have been welcomed by investors. The stock market is responding to that confidence.

This echoes the 2020-2021 stock market rally, which also reflected investor optimism about economic reforms. The mechanism was different then, but the result was the same: a market responding to policy changes.

The winners: investors who have seen their portfolios grow and the Nigerian Exchange, which gains visibility. The losers: investors who missed the rally, and the Nigerian economy, which must sustain the momentum.

Bottom Line: The stock market gained ₦390 billion in two days. That is good news. The question is whether the rally will continue or fizzle out.