Nigerian investors seem excited about the Presidency of Bola Ahmed Tinubu as the Nigerian Exchange Group (NGX) grew by 5.22% on Tinubu’s promises.
The new president had promised to put an end to subsidies and channel the over N50 billion spent on oil subsidy on infrastructure and other developmental projects.
Tinubu, who also promised to ensure a friendly business environment, said he would rejig the nation’s economy to ensure at least a 6% minimum economic growth rate, converge the foreign exchange rates, improve electricity supply, and address multiple taxes, among others.
Nigerian investors that have been looking for a lifeline following eight years of vague economic policies and sluggish growth jump on stocks, one of the key indicators of an economy.
The volume of stocks traded jumped 133.49% while the value traded grew by 106.07% to $33.99 million in the very first trading session under Tinubu’s led administration.
The NGX All-Share Index gained 5.23% to close the day at 55,745.74 index points as a total of 65 stocks gained, against 12 that lost points. The market value of listed equities also grew by 5.23% to N30.353 trillion.
This positive movement is the largest seen in the last 30 months and the second largest in the last 7 years.
Bullish trends were most conspicuous in the banking sector with the index appreciating by 8.20% on the back of a positive run in First Bank of Nigeria Holdings to N13.50, United Bank for Africa to N10.20, Airtel to N1125, Stanbic to N40.00 and Nestle closed at N1,125.
