• Saturday, June 15, 2024
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Total value of equities trade on NGX hits N35bn amid bullish sentiments

NGX lauds Neimeth for enhancing operations, restoring investor confidence

Amid demand and price appreciation, the total value of stocks traded on the floor of the Nigerian Exchange Limited (NGX) has now risen to N34.797 billion in two consecutive trading sessions.

This is coming after the securities market hit the biggest single day gain in two years, rising by 5.23 percent on Tuesday as investors reacted positively to President Bola Tinubu’s no more fuel subsidy and immediate unification of exchange rates’ comments on Monday.

Tinubu also stated that his administration will be targeting a higher GDP growth, create jobs, work towards a unified exchange rate and ensure that investors and foreign businesses repatriate their hard earned dividends and profits home. On resumption of yesterday’s proceedings, the All Share Index (ASI), which had closed at 55,738.35 points in the previous trading session, closed the trading month at 55,769.28 points.

Also market capitalisation which grew by N1.52trillion in the previous session, gained about N17billion to close the month at N30.366 trillion. This meant that investors have now gained about N1.68 trillion in two days.

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The gain came as a result of sustained demand in the shares of MTNN (+0.40 per cent), BUA Foods (+5.61 percent) and Geregu (+1.68 percent). At the close of business, the volume of stocks traded stood at 661.51 million shares valued at N18.998 billion which exchanged hands in 10,024 deals.

This is in contrast with the volume of stocks traded which stood at 1.09 billion shares while the value of stocks traded stood at N15.799 billion in 9,916 deals in the previous trading session. This represents N34.797 billion staked by investors in 1,719.509 billion shares in two days.

Reacting to the development, David Adonri, Executive Vice President, High-cap Securities,
said the President’s speech addressed three critical areas of national need – insecurity fuel subsidy and unification of the exchange rates.

Adonri maintained that Tinubu’s remedial plans to tackle the challenges could boost the economy and attract investments.

“I would attribute this gain to a new government bounce as investors are happy and this means that their confidence has doubled compared to how it closed last week. The policy announcements made by the President resonated well with investors and I believe that his comments on the pressure points were quite stimulating and this is what resulted in the huge gain,” he said.