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.
Nigerian Stock Market Dips as Weak Momentum Drains N39 Billion from Investors
Dr. Yemi Cardoso’s Nomination Boosts Confidence as Stock Investors Gained N264 Billion
The bullish momentum in the Nigerian Exchange Limited continued on Tuesday as investors pocketed N264 billion in profit following Monday’s gains of N263 billion.
Both the market capitalization and the All-Share Index, which gauge the movement of share prices for all listed companies surged by 0.71 percent to N37.413 trillion and 68,359.22 points, respectively.
This optimistic trading trend emerges as investors increasingly show confidence in the local market and the broader economy, fueled in part by the news of Dr. Yemi Cardoso’s nomination as the Governor of the Central Bank of Nigeria.
As Tuesday’s session drew to a close, the volume of shares traded experienced a significant uptick of 31.33 percent to 676.74 million. However, the number of deals declined by 8.35 percent to 7,659 while the total trade value decreased by 33.97 percent to N5.89 billion.
Market sentiments also leaned towards the bullish side, with 36 gainers outpacing the 27 losers.
Among the top-performing stocks that caught the attention of investors were:
- Berger Paints Plc, which surged by 9.95 percent to conclude the trading day at N11.60.
- Oando Plc, which recently released its audited results for 2021, saw a 9.92 percent increase, closing at N13.30.
- BUA Foods, which gained 6.32 percent to close at N196.70.
- PZ’s shares appreciated by 1.45 percent per unit, ending at N20.
- GTCO Plc stock increased in value by 0.43 percent, closing at N35.40.
On the flip side, the top losers included:
- SCOA Plc, witnessing a 10 percent depreciation in its shares, closing at N1.24.
- Unilever’s shares recorded an 8.28 percent drop, concluding at N13.30.
- United Bank for Africa Plc, which lost 1.96 percent in share value, closing at N17.50.
- FBN Holdings Plc, suffering a 1.69 percent decline, closing at N17.40.
- Accesscorp’s shares depreciated by 0.29 percent, closing trading at N17.40.
The Nigerian Exchange continues to display its resilience and attractiveness to investors, making it an exciting space to watch for potential opportunities and market trends.
Nigerian Stock Market Sheds N409 Billion Last Week
Investors in the Nigerian stock market lost N409 billion last week after weeks of bullish run following President Bola Ahmed Tinubu’s economic restructuring.
During the week, investors traded 2.933 billion shares worth N47.449 billion in 44,654 deals against a total of 2.644 billion shares valued at N45.450 billion that exchanged hands in 44,189 deals in the previous week.
The Financial Services Industry led the activity chart with 1.955 billion shares valued at N26.384 billion that were traded in 21,707 deals. Therefore, contributing 66.67% and 55.61% to the total equity turnover volume and value, respectively.
The Oil and Gas Industry followed with 281.356 million shares worth N5.307 billion that exchanged hands in 4,423 deals. In third place was the Conglomerates Industry, with a turnover of 280.586 million shares worth N1.763 billion in 3,079 deals.
United Bank for Africa Plc, Transnational Corporation Plc and Access Holdings Plc were the three most traded equities in the week. The three accounted for 1.026 billion shares worth N13.649 billion that were transacted in 9,733 deals and contributed 34.98% and 28.77% to the total equity turnover volume and value respectively.
The NGX All-Share Index declined by 1.10% to close the week at 67,395.74 index points from 68,143.34 index points reported in the previous week while market capitalization depreciated by the same 1.10% or N409 billion to close the week at N36.886 trillion.
Similarly, all other indices finished lower with the exception of NGX Insurance, NGX MERI Growth and NGX Growth which appreciated by 0.46%, 0.55% and 4.15% respectively while the NGX ASeM index closed flat.
Thirty-two equities appreciated in price during the week lower than fifty-two equities in the previous week. Fifty-three equities depreciated in price higher than thirty-five in the previous week, while seventy equities remained unchanged, higher than sixtyeight recorded in the previous week.
News3 weeks ago
Npower Program Restores Hope with Long-Awaited Stipend Disbursement
Commodities3 weeks ago
Three Chinese Groups Vying to Acquire $2 Billion Botswana Copper Mine
Naira4 weeks ago
Dollar to Naira Today Black Market, August 29, 2023
News3 weeks ago
Government Plans to Revamp Npower Scheme and Combat Poverty
Forex4 weeks ago
Dollar to Naira Black Market Today, 1st September 2023
Banking Sector4 weeks ago
Guaranty Trust Holding Co. Surpasses Expectations with $468 Million Forex Windfall
Forex3 weeks ago
Black Market Dollar to Naira Today, September 7th, 2023
Startups4 weeks ago
Nigerian-American Nurse Turned Millionaire Entrepreneur: The Inspiring Journey of Courtney Adeleye