In a resounding testament to President Bola Tinubu’s economic stewardship, the Nigerian financial landscape witnessed a historic upswing in the first six months of his administration, with the All-Share Index (ASI) surging by an impressive 34.11%.
This positive trend stands in stark contrast to the initial months under his predecessor, Muhammadu Buhari, when the ASI experienced a dip of 19.51%, according to data from Statisense.
Analyzing the market dynamics, this surge marks the highest positive outcome for the ASI in the first half of any administration, according to a report by Statisense.
The buoyant performance showcases the resilience of Nigeria’s capital market under Tinubu’s economic policies, signaling a promising trajectory for the nation’s financial landscape.
Tinubu’s administration strategically leveraged various factors to achieve this remarkable feat.
The Supreme Court’s resolution of contentions surrounding the presidency provided a stabilizing force, eliminating uncertainties and allowing the President to focus on economic matters.
Additionally, third-quarter results from listed companies, particularly in the banking sector, played a pivotal role in boosting investor confidence.
Tajudeen Olayinka, the Managing Director of Wyoming Capital, emphasized the significance of the Supreme Court’s decision, noting that it cleared the path for undistracted attention to economic matters.
He further highlighted the positive impact of robust third-quarter results, especially in the banking sector, which contributed to the historic high.
Statisense’s report traced the ASI’s performance during the first six months of each administration from 1999 to date.
The findings indicated that the Tinubu administration’s achievement surpassed the growth recorded during the initial periods of other administrations, including those of former presidents Olusegun Obasanjo and Umaru Yar’Adua.
The Chief Executive Officer of the Nigerian Exchange Limited (NGX), Temi Popoola, expressed optimism about the market’s outlook, attributing the positive sentiment to the alignment of government officials with the goals of the capital market.
Popoola highlighted the government’s understanding of capital market dynamics, emphasizing the potential for sustained growth and development.
While acknowledging the positive momentum, analysts stress the need for continuous efforts to ensure the longevity of this sentiment.
Ayo Olubunmi, Head of Financial Institutions Ratings at Agusto & Co, urged the administration to implement policies that sustain the positive sentiment, emphasizing the importance of avoiding a reversal to negative trends post-transition.
As the capital market continues to reflect positive signals, the success of the administration’s economic policies becomes increasingly evident, providing a foundation for future growth and development.
