Stocks rise by 0.71% as investors price-in Cardoso appointment, others

Nigeria’s equities market closed in the green zone on Monday as investors expectedly reacted positively to among others, the recent appointment of Olayemi Michael Cardoso as new Governor of the Central Bank of Nigeria (CBN).

The market’s key performance indicators – Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation increased from preceding trading day’s lows of 67,395.74 points and N36.886trillion respectively to 67,877.17 points and N37.149 trillion.
“It is expected that the recent nomination of a new CBN governor and management team should be seen as a positive signal for the market. Notably, banking tickers are likely to benefit significantly from this positive sentiment as investors view a change in leadership as an opportunity for fresh perspectives and policy direction that might benefit the sector,” Meristem analyst said.

Read also: Stock market sees first gain this week

Also speaking on the new CBN governor’s appointment, Abiola Rasaq, former economist and head investor relations for United Bank for Africa Plc said, “I think he is a good choice, going by his knowledge and antecedents both in private and public service. In addition, I expect there would be a good handshake between the monetary and fiscal authority, having previously worked closely with Wale Edun”.

“Hopefully, he is able to take tough decisions, including taking relevant reforms for enhancing the financial system, without fear or favour of any of his acquaintances, including possibilities of erring the interests of some political bigwigs across the divides.

“As regards capacity, I believes he does have the capacity and perhaps the only risk I see to his performance and reform impact on the economy is politics, which I do hope he would be able to depoliticise the CBN as an independent institution, with hope of enhancing CBN status to its deserving level.

“Indeed, a lot of clean ups and surgery clearly awaits the new team,” Rasaq said.

Read also: Emefiele resigns as CBN governor paving way for Cardoso’s appointment

The stock market of Africa’s largest economy opened this week on a positive note, rising by 0.71percent or N263billion on Monday. The market’s positive return year-to-date (YtD) rose to 32.44percent.
Chams rallied most, from N1.10 to N1.21, adding 11kobo or 10percent, followed by Northern Nigeria Flour Mills which increased from N13.50 to N14.85, adding N1.35 or 10percent. Oando rose from N11 to N12.10, up by N1.10 or 10percent.

Stanbic IBTC Holdings moved from N68.90 to N75.50, up by N6.60 or 9.58percent, while Lasaco rose from N1.92 to N2.10, up by 18kobo or 9.38percent.

In 8,357 deals, investors exchanged 515,280,396 shares valued at N8.925billion. Shares of UBA, Universal Insurance, Transcorp, Access Bank, and Chams were actively traded.