Nigeria’s equities market furthered its northward journey on Wednesday by 0.04 percent or N13 billion as investors in their positive mood continued to price in the gains of President Bola Ahmed Tinubu’s pro-market policies.
Stocks of listed major marketers in the oil and gas sector were in demand. For instance, Conoil rose the most, from N52.70 to N57.95, adding N5.25 or 9.96 percent, followed by that MRS which increased from N40.80 to N44.85, adding N4.05 or 9.93 percent. Jaiz Bank also increased from day open low of N1.10 to N1.21, up by 11kobo or 10 percent.
The All-Share Index (ASI) and its equities Market Capitalisation – increased from the preceding trading day’s low of 55,745.74 points and N30.353 trillion respectively to 55,769.28 points and N30.366 trillion. The market’s positive return year-to-date (YtD) increased to 8.82 percent.
The equity market was electrified by Tinubu’s inaugural address, with the NGX All-Share Index (ASI) rising by 5.23 percent on Tuesday, its highest daily rise in two years.
President Tinubu in his inaugural speech highlighted the need for a unified exchange rate and a reduction in interest rates to drive up investment in the country. He also said, “Fuel subsidy is gone”.
According to Coronation Research analysts in their recent note to investors, “Although there is little in the address that was not in the All Progressives Congress’s (APC) presidential manifesto, which has been available for five months, his statement of key pro-investment themes has persuaded the market that reform is on the way”.
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“The President’s speech has several specific messages for investors, namely to tackle multiple taxation and other anti-
investment inhibitions, and to ensure that foreign investors are able to repatriate dividends and profits (something which has
been difficult in recent years due to low liquidity in the official foreign exchange markets),” the analysts added.
Investors exchanged mostly banking stocks such as Access Corporation, UBA, Zenith Bank, GTCO and Sterling Bank. In 10,024 deals, investors exchanged 661,509,042 shares valued at N18.998 billion.
Lagos-based Vetiva research analysts noted that the market exhibited a favourable response to President Tinubu’s inauguration speech and his proposed plans for the country’s economy.
“This positive sentiment is anticipated to endure in the upcoming session, as investors responded positively to the latest transition of power to the new administration,” the analysts added.
