Following the inauguration of President Bola Tinubu, investor confidence helped the Nigerian Exchange’s equity market start trading for the week on a bullish note.
The former administration failed to include fuel subsidies in the 2023 budget, according to Tinubu, who promised to ensure a single exchange rate as part of his efforts to strengthen the Nigerian economy in his inaugural speech on Monday.
In particular, the market capitalization increased by N1.505 trillion (5.22%), or N2.844 trillion, to close at N30.349 trillion.
The All-Share Index also increased by 2,764.47 points, or 5.22 percent, to close at 55,738.35, up from the 52,973.88 it had at the previous trading.
This caused the Year-to-Date gain to moderate to 8.76%.
Gains in Tier-one banking stocks like Guaranty Trust Holding Company, Access Holdings, United Bank for Africa, and Zenith Bank helped the market perform well, along with index heavyweights MTN Nigeria, Dangote Cement, and BUA Cement.
The Transcorp share of Access Holdings, valued at N2.45 billion, topped the list of shares that were most actively traded.
Zenith Bank traded 66.13 million shares valued at N1.92 billion, GTCO traded 76.38 million shares worth N2.18 billion, and both companies came in third.
81.99 million shares worth N831.47 million changed hands at UBA, while 95.68 million shares worth N309.24 million changed hands at Transcorp.
“The market exhibited a favourable response to President Tinubu’s inauguration speech and his proposed plans for the country’s economy,” analysts at Vetiva Securities Ltd. said.
Investors reacted favourably to the most recent transfer of power to the new administration, and this optimistic outlook is expected to continue in the upcoming session.
54 advancing stocks outnumbered four declining ones as the market breadth closed in a positive territory.
Zenith Bank experienced the largest price increase, up 10%, to close at N29.70 per share.
Following closely behind with gains of 10% each to close at N8.25 and N42.35 per share, respectively, were Transcorp Hotels and Nigeria Breweries.
Both Jaiz Bank and First City Monument Bank saw increases of 10%, closing at N1.10 and N4.62 per share, respectively.
Ikeja Hotel, on the other hand, topped the losers’ chart with a 10% loss and a closing share price of N2.16.
Tantalizer fell by 8% to close at $2.3 per share, NCR fell by 9.88% to close at N2.76, and both companies experienced losses.
Following with a loss of 7.94% to close at N29, Julius Barger, International Energy Insurance also experienced a loss of 6.98% to close at N1.20 per share.
Analysis of today’s market activity revealed that trade turnover increased in comparison to the prior session, with the value of transactions rising by 106.07%.
9,916 transactions involved a total of 1.08 billion shares worth N15.80 billion. NAN43
