Value of shares closes at N39.1trn in November

The Nigeria Exchange witnessed a leap in its market capitalisation, increasing by N1.0 trillion in the month of November to close at N39.1 trillion. The domestic market was propelled by the listing of Mecure Industries during the period.

“The Nigerian equities market sustained its bullish performance as the benchmark index gained 3.1 per cent month-on-month (m/m) to print at 71,365.25 points. Consequently, Year-to-Date (YTD) improved to 39.3 per cent from 29.5 per cent while market capitalisation advanced N1.0 trillion to N39.1 trillion. Notably, Mecure Industries’ listing on the NGX growth board raised the segment’s capitalisation by ₦11.8bn”, said analysts at Afrinvest.

Monthly trading activity also improved as average volume and value rose 44.3 per cent and 31.1 per cent during the period to 486.1 million units of shares and N6.8 billion respectively.

Global Equities Market: Positive Outing on Favourable Economic Data
The global equities market also rallied in November, riding the wave of positive inflation trajectory (US and UK) and hawkish pause by systemic central banks.

In the US, the Federal Open Market Committee (FOMC) held the federal funds rate at 5.25 per cent to 5.5 per cent for the second consecutive time. The pause was informed by the third quarter Gross Domestic Product (GDP) expansion, still-elevated inflation, and a tight job market.
Similarly, the Bank of England left its key policy rate at the 15-year high of 5.25 per cent to balance its price-output objective…

In the foreign exchange (forex) market, the naira witnessed divergent outing. While it appreciated by0.8 per cent in the parallel market to N1,150 tothedollar, it depreciated by 2.1 per cent at the NAFEM segment to N832.32 to the dollar.

In November, the downward trend in global crude oil prices persisted. Brent declined 4.9 per cent m/m to $80.86/bbl., brushing off the expected impact of Organisation of Petroleum Exporting countries (OPEC+) production cuts.