In what appeared to be positive sentiment of investors to current changes in the Central Bank of Nigeria (CBN) and other announced policy measures by the new administration, the Nigerian equities market’s trading on Tuesday closed bullish with the market capitalization growing by highest value since July 2008, peaking at N31.670 trillion.
At the close of the trading session, the benchmark All Share Index (ASI) rose by 4% or 2,232.58 points to close at 58,163.55 points, representing 13.49% year-to-date (YTD) gain as investors continue to react positively to emerging developments in the nation’s political economy’s space.
Similarly, the market capitalization increased by N1.22 trillion or 4% to settle at N31.670 trillion.
According to data from the Nigerian Exchange Group (NGX) on the local bourse’s trading for the day under reviews the Banking Index rose by 6.7% to lead the sectoral performance, followed by the NSE Insurance Index which gained 5.4%.
Also, the NSE Consumer Goods Index and the NSE Oil and Gas Index also advanced by 4.3% and 3.9%, respectively.
The market indices also showed that the value of deals transacted rose by 55% compared to the last trading day, while the volume of deals also rose by about 106%. Market Turnover was up by about 216%.
As expected, the market breadth was also positive, as 62 stocks appreciated among which the top 10 gained above 9% on the day.
The NGX data reflected that the top ASI gainers were ACCESSCORP, GTCO, NASCON, ZENITHBANK and LASCO all of which gained 10% respectively while the top losers comprised ELAHLAKES (-10%), JOHNHOLT (-10%), CAVERTON (-4.6%), VERITAS (-4.35%), and HONEYWELLFLOUR (-4.29%).
Market analysts linked the remarkable trajectory of the local bourse in terms of value and volume traded partly to President Bola Ahmed Tinubu last Friday’s suspension of the Central Bank Governor, Mr Godwin Emefiele, from office due to what he linked to ongoing investigation of his office and the planned reforms in the financial sector of the economy.
They anticipated that the suspension of the apex bank’s governor would pave the way for a more transparent and accountable monetary policy, as well as a possible devaluation of the naira to ease the pressure on the exchange rate and inflation.
