Nigeria Stock Exchange: Return of the Bulls

After a dismal outing the first 9 months of the year, it now appears a series of fortunate events have conspired to return the Nigerian stock market to a more positive trend. In the last three trading days of September, the Nigerian Stock Exchange gained a total of 178 basis points, placing the All Share Index at 20,373.

The Bank bailout and restructuring exercise initiated in 2009 by the Governor of the CBN was announced as officially closed last week. Foreign investors and local fund managers pleased at the return of sanity to the bourse’s most investor friendly sector have begun to snap up bank shares at extremely pocket friendly valuations.

On Friday shares of GTB, UBA, Access and FCMB . Ecobank, Wema Bank and First Bank were up by an average of 4%. The downside in the sector was recorded by Diamond, Fidelity, Skye and Unity banks.

Also rumors that significant merger and acquisitions activity is set to return to the market may be responsible for further gains in bullish market sentiment with news that Standard Bank may be set to pick up a significant stake in GTB leading the way.

Whatever the reason may be for this rally in the stock market, current events demand that shrewd Nigerian investors begin to take positions in the many attractive stock positions available.

Now is a good a time as there ever will be to contact your broker.