In an impressive display of strength and investor confidence, the Nigerian stock market witnessed a significant surge on Tuesday, propelling the market capitalization to a staggering N31.6 trillion.
The remarkable growth marked a momentous jump in the value of listed companies and further solidified Nigeria’s position as a key player in the global financial landscape.
The market capitalization soared by four percent, amounting to an increase of N1.22 trillion. This surge sent waves of excitement throughout the investment community, reflecting a renewed sense of optimism and interest in the Nigerian stock market.
Driven by the positive news of the suspension of Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), by President Bola Tinubu, investors quickly reacted to this development by pouring funds into the market.
The NGX-All Share Index appreciated by 2,232.58 points, or 4% to close at an impressive 58,163.55 points. This surge reflects the overall positive sentiment prevailing among investors and their growing belief in the market’s potential for growth.
The banking sector played a pivotal role in driving the market’s upward trajectory. The NGX Banking Index posted a substantial gain of 6.7 percent, while individual banking stocks witnessed remarkable gains. Notable institutions such as Access Bank, GTCO, Zenith Bank, UBA, and FBNH saw their year-to-date increases reach 68 percent, 33.9 percent, 28.3 percent, 33 percent, and 43 percent, respectively. These impressive numbers underscore the banking sector’s resilience and attractiveness to investors.
The market rally extended beyond the banking sector, as the NGX Insurance Index gained 5.4 percent, while the NGX Consumer Goods Index and NGX Oil and Gas Index advanced by 4.3 percent and 3.9 percent, respectively.
The value of deals transacted increased by 55 percent compared to the previous trading day, with the volume of deals rising by 106 percent. Market turnover soared by an astounding 216 percent, driven by growing investors’ interest.
On the other hands, Elah Lakes, John Hold, Caveraon, Veritas, and Honeywell Flour were among the top losers. However, the overall market sentiment remained positive.
The surge in market capitalization on Tuesday further bolsters investor confidence in the Nigerian stock market. With recent economic policies and ongoing reforms, market experts project sustained growth and enhanced performance for companies operating within the market.
