Nigeria’s capital market landscape has entered a transformative new chapter as the country officially reclaims its Frontier Market status from global index provider FTSE Russell.
Ending a three-year stint in the “Unclassified” wilderness—triggered by severe foreign exchange bottlenecks and capital repatriation hurdles—this long-awaited reinstatement serves as an independent vote of confidence in the nation’s sweeping macroeconomic and structural reforms.
Expectedly, the milestone has injected a powerful wave of optimism into the domestic bourse, which in turn sparks stock market rally as foreign portfolio investors (FPIs) and index-tracking funds reposition themselves for entry into the Nigerian market.
In early trading on Friday August 28, the market, despite trading opening in red was seen routing northwards by +0.06 percent as more stock buyers outweighed the sellers on the Bourse as at 12 noon.
The renewed optimism around upward trajectory came after the market on Thursday halted an eleven-day losing streak ahead of FTSE Russell announcement.
The NGX-ASI which was 239,302.36 points as at 12 noon on Friday has risen by 0.41 percent to 240,136.10 points as at 1.18 pm, strengthening earlier positive outlook for the market after Nigeria’s regain of its Frontier Market status. Also, the value of listed stocks rose from N154.536 trillion by as at 12 noon on Friday to N155.080 trillion.
Read also: FG lauds NGX Group, SEC, CBN, CSCS as FTSE reclassifies Nigeria to Frontier market status
While the stock market rally signals an enthusiastic market opening, capital market authorities emphasise that sustained growth will rely on maintaining policy consistency, tight…
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Read Full Article by Iheanyi Nwachukwu at businessday.ng
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