Why equities are rising, by NSE
Our Reporter
The Nigerian Stock Exchange (NSE) has attributed the sustained jumpy appreciation in prices of Nigerian equities to smart thinking by investors hunting for improved returns and the general resilience of the Nigerian stock market.
The NSE’s index circuit breaker was triggered last week’s Thursday after the benchmark All Share Index (ASI) rose beyond the 5.0 per cent threshold set for temporary halt of the market in the event of extremely volatile price changes. It was the first time the automatic index circuit breaker came on since introduction in 2016.
The circuit breaker protocol was triggered at 12:55pm when the ASI increased from its opening index of 33,268.36 points to 34,959.39 points within barely three hours of trading. The market was halted for 30 minutes for investors to take a breath and assimilate the market dynamics. The market thereafter reopened at exactly 1:25 pm, with a 10-minute intraday auction session, before resuming continuous trading till the close of the day at 2:30 pm. The market thereafter closed with average gain of 6.23 per cent for Thursday.
Speaking at the weekend, Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said the sustained rally at the equities market demonstrates the opportunities that abound in the market for discerning investors.
