Emmanuel OchayiChams, leading the pack with a 10% appreciation, recently unveiled a game-changing partnership with UnionPay to enhance international payments for UnionPay cards in Nigeria.
According to Chams, this collaboration aims to provide a cost-effective alternative for global transactions, particularly focusing on trade with China and Southeast Asia.
The All-Share Index showcased a robust performance, escalating by 1.92% or 1,597.93 basis points to settle at N84,640.89, inching closer to the coveted 85,000-point mark compared to Friday’s close. The year-to-date gains bolstered to 13.20%, up from the previous session’s 11.06%.
Transcorp Plc, United Bank for Africa, Zenith Bank, Access Holdings, and MTN Nigeria emerged as the most traded stocks, yet MTN Nigeria’s share price remained unchanged despite an exchange of 2,832,680 units worth N791.554m in 419 deals.
With a surge in transaction volume to 807.51 million units and a traded stocks value improvement to N11.03bn from N9.097bn, the market witnessed increased activity. Market Breadth reflected a positive sentiment with 68 gainers and only eight losers.
However, the losers’ camp featured Abbey Mortgage Bank Plc, Julius Berger, Custodian, Africa Prudential, FBN Holdings, Champion, ABC Transport, and United Capital, experiencing losses ranging from 0.39% to 9.52%.
Analyzing the bullish trend, Oluseye Awosoga, the Managing Director/CEO of Parthian Partners, attributed the sustained momentum to foreign investment inflows. Cautiously optimistic, he emphasized the need to address FX challenges for sustained growth. Awosoga highlighted the potential for a significant rally if the FX situation improves, as Nigerian stocks remain relatively cheap compared to other emerging markets.
He said, “We haven’t seen a lot of foreign investors in the market. A lot of our stocks are cheap now given the devaluation that has happened to the naira. If we can solve our FX problems, wherein foreign investors feel that they can take their money out easily, then I expect them to pile in because, in comparison to other emerging markets, we are relatively cheap but if you are just looking at it based on Nigerian and local factors, I think this rally is due for a significant pullback before we decide whether we are continuing on this trajectory or not.”
“At this point, I’m cautiously optimistic except if our FX situation changes significantly. If the FX situation changes, I expect a significant rally because like I said earlier, we are relatively cheap compared to other emerging markets.”
As the market continues to evolve, stakeholders keenly watch for developments in foreign investment dynamics and FX stability, anticipating a potential shift in the trajectory of this remarkable rally.
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