Nigerian Stock Exchange Rebounds Following Ministerial List

• Nigerian Stock Exchange Rebounds Following Ministerial List

The Nigerian Stock Exchange (NSE) rebounded slightly on Tuesday after President Muhammadu Buhari forwarded 43 ministerial nominees to the National Assembly for confirmation.

The stock exchange, which has been on the decline since the beginning of the year, rebounded on Tuesday to close higher at 1.21 percent.

NSE All-Share Index rose 1.21 percent from 27,808.60 points recorded on Monday to 28,144.87 basis points.

While market capitalisation of listed equities grew from N13.553 trillion to N13.716 trillion as the industrial goods sector and other three sectors rebounded to push the stock market slightly higher. The market gained N163.8 billion on Tuesday.

Again, investor sentiment rose from 0.7x to 1.4x as a total of 21 stocks closed in the green, against 15 that dipped.

Sectorial performance analysis showed industrial goods sector gained 3.9 percent. Followed by consumer goods sector with a 1.7 percent gain.

The banking sector gained marginally, added 0.5 percent.

However, the oil and gas and the insurance sectors declined by 0.7 percent and 0.2 percent, respectively.

Also, activity level declined as both volume and value traded dropped by 52.7 percent and 6.8 percent to settle at 274.206 million units and N2.844bn, respectively.

The stock exchange has been on the decline for months as traders continue to sell their holdings in the absence of a clear economic path due to the delay in cabinet formation by the current administration.

But with ministerial nominees forwarded to the Senate and four, Dr. Uchechukwu Ogah, (Abia), Emeka Nwajiuba (Imo), Godswill Akpabio (Akwa Ibom) and George Akume (Benue), already confirmed the market rebounded and expected to continue in the near-term as traders strive to position for broader rebound in price.