NSE: Investors Gain N253.7bn as Market Capitalization Hits N12tn

As the Nigeria 2019 elections approaches, market capitalization of equities listed on the Nigerian Stock Exchange (NSE) rose above the N12 trillion mark and investors in the nation’s stock market as well,  gained N253.7 billion.

The market capitalization on Tuesday, upsurged to N12.105 trillion from N11.852 trillion on Monday. The All Share Index increased by 2.1 per cent from 31,781.87 basis points on Monday to 32,462.31 basis points on Tuesday, its highest level in four months.

Equities value listed on the NSE  continuously soared eight consecutive days, a rise analysts attributed to the post-election expectations of investors.

Analysts at Afrinvest said, “In recent weeks, we have observed increased inflow into the domestic market despite the political risk. We believe concerns for post-election stability are beginning to moderate, thus the increased appetite for cheap assets.”

Bloomberg, in a report, quoting Olabisi Ayodeji, an analyst at Exotic Capital, said investors may be positioning for an Atiku win.

“The perception among foreign investors is that Atiku brings greater prospects for improved management of an economy that vies with South Africa to be the continent’s largest.

“If Atiku wins, the market should perform better after the elections. Conversely, a Buhari victory may prompt a negative reaction in stocks. The gains will probably be sustained until the weekend as what we will see after that will depend on what the outcome of the election is.” Ayodeji said.

In an earlier report, Citigroup Incorporated analysts said Nigeria’s stock market might rally if Buhari loses the election.

The most traded stocks by volume were Diamond Bank Plc (125.8 million units), Zenith Bank Plc (63.2 million units) and Guaranty Trust Bank Plc (57.1 million units). The most traded stocks by value were Guaranty Trust Bank (N2.2 billion), Zenith Bank (N1.6 billion) and Dangote Cement Plc (N1.5 billion).

The top gainers for the day, all of which increased by 10 per cent each, were Dangote Flour Mills Plc, Jaiz Bank Plc, Livestock Feeds Plc and NPF Microfinance Bank Plc.

The top five losers, all of whose respective share prices shed 8 per cent, 7.85 per cent, 6.06 per cent, 5.94 per cent and 5.19 per cent were Regency Assurance Plc, UACN Property Development Company Plc, Lasaco Assurance Plc, Unity Bank Plc and AIICO Insurance.