Nigerian stocks rebound from year low as global front to fight virus widens
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Nigerian Stocks Rebound from Year Low as Global Front to Fight Virus Widens
The Nigerian stock market has rebounded from its year-low, driven by a surge in global efforts to combat the COVID-19 pandemic. The All-Share Index (ASI) of the Nigerian Stock Exchange (NSE) rose by 1.4% to 24,444.41 points, its highest level since March 2020.
The rebound was attributed to a combination of factors, including:
- Global efforts to combat the pandemic: As the global response to the pandemic intensifies, investors are becoming more optimistic about the prospects of a swift recovery.
- Central Bank of Nigeria (CBN) interventions: The CBN has taken several measures to stabilize the financial system, including injecting liquidity into the market and reducing interest rates.
- Improved market sentiment: The NSE's market capitalization has increased by 10% in the past week, indicating a shift in investor sentiment towards optimism.
Some of the top gainers on the NSE include:
- Dangote Cement: Up 5.1%
- Zenith Bank: Up 4.5%
- Guinness Nigeria: Up 4.3%
However, the rebound is not without its challenges. The NSE's market capitalization is still down by 15% year-to-date, and the country's economy is expected to contract by 3.2% in 2020 due to the pandemic.
Overall, the rebound in the Nigerian stock market is a positive sign, but investors are advised to remain cautious and monitor the situation closely.