The Nigerian All-Share Index edged higher today, holding above the 140,000-point level and marking its fifth successive session of gains.
This performance continues a recent bullish trend observed in the market. Sector performance was also mostly positive, reflecting the general optimistic sentiment.
However, the market will need further confirmation to signal a solid rebound that can offset the recent correction.
The banking sector was higher today, with gains in Zenith Bank, UBA, and FBN Holdings.
On the macroeconomic front, the naira firmed to reach NGN 1,500/USD this week, easing worries about imported inflation. Furthermore, easing inflation and signals from the CBN that lending rates could fall could create a constructive outlook for Nigerian equities. A policy pivot at the September 22–23 Monetary Policy Committee (MPC) meeting could accelerate the potential recovery.
Additionally, the Q2 GDP growth rate is expected to be between 3.2% and 3.9% year-on-year. An acceleration from Q1’s 3.13% growth would be a positive development for the market and investor sentiment.
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