Investors on the Nigerian Stock Exchange (NSE) on Wednesday reacted positively to the inauguration and assignment of ministers to various portfolios by President Muhammadu Buhari.
Newsmen reports that the All-Share Index rallied by 294.32 points or 1.09 per cent to close at 27,352.94 against 27,058.62 on Tuesday.
The upturn was impacted by gains recorded in medium and large capitalised stocks, among which are; Nestle Nigeria, MTN Nigeria, Ecobank Trans International (ETI), Dangote Sugar Refinery and CI Leasing.
Inauguration: New ministers upbeat on performance(Opens in a new browser tab)
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd, attributed the market growth to the inauguration and allotment of ministers by the president.
Omordion said that investors reacted positively to the news leading to increase in buying interest in anticipation of positive policies from the ministers.
He said the inauguration of the new federal cabinet and the expected policies from fiscal and monetary authorities would stimulate the much needed economic growth and development.
“With real governance kicking off with the ministers being assigned portfolios, it is expected that the management of economic information and pronouncements will address investors concern about the safety of their capital and return on investment.
“It is very important that there is effective coordination between the fiscal and monetary authorities if the economy will make any headway going forward.
“This should come in the form of constant synergy among policy makers to boost confidence in the system again,” he said.
He added that the approval of N600 billion for the revitalisation of the power sector was a good step in the right direction.
Omordion, however, noted that implementation would determine its impact on the economy at the long run.
Newsmen reports that the market capitalisation rose by 0.91 per cent due to the delisting of Skye Bank Plc and Fortis Microfinance from the NSE Daily Official List.
The Exchange said the delisting of the afore-listed companies was approved by the National Council on May 30, in line with its regulatory delisting process.
It said that the companies were delisted as a result of the revocation of their operating licenses by their primary regulator, the Central Bank of Nigeria.
However, market breadth closed positive with 23 gainers and 16 losers.
Honeywell Flour Mills recorded the highest price gain of 9.68 per cent, to close at N1.02 per share.
ETI trailed with gain of 9.60 per cent to close at N6.85, while AXA Mansard Insurance appreciated by 9.41 per cent to close at N1.86 per share.
Union Diagnostic Clinical Services rose by 9.09 per cent to close at 24k, while Jaiz Bank appreciated by 8.82 per cent to close at 37k per share.
Conversely, Forte Oil led the losers’ chart by 10 per cent, to close at N15.30 per share.
Okomu Oil followed with a loss of 9.18 per cent to close at N44.50, while Livestock Feeds dipped 8.89 to close at 41k per share.
Wapic Insurance lost 5.56 per cent to close at 34k, while Access Bank shed 4.62 per cent to close at N6.20 per share.
The total volume of shares traded grew by 73.6 per cent with an exchange of 363.97 million shares worth N4.52 billion traded in 3,451 deals.
This was in contrast with a total of 209.62 million shares valued at N3.24 billion exchanged in 3,743 deals on Tuesday.
The banking equities drove the activity chart with United Bank for Africa (UBA) emerging at the most active with 64.73 million shares worth N381.92 million.
Access Bank followed with 58.12 million shares worth N372.27 million, while Guaranty Trust Bank sold 43.99 million shares valued at N1.17 billion.
FBN Holdings traded 36.14 million shares worth N177.94 million, while Zenith Bank transacted 34.56 million shares valued at N608.11 million.