Equities Market Rally To N521bn Gains Despite Uncertainty In Political Circle
Amid the uncertainties in the Nigerian political scene, investors still embraced the equities market, rallying stocks to an N521.560 billion gain on Monday trading.
The political scene is currently heated as Nigeria prepares for her general elections that starts in February 2023. The insistence of some political appointees and civil servants to abide by section 84 (12) of the electoral acts provides that appointees that are interested in elective positions or as a delegate should resign from their appointments with the government.
One of such is the governor of the Central Bank of Nigeria(CBN) Godwin Emefiele who on Saturday said he has not decided to run for the election for the position of the President but on Monday made a U-turn and headed to court to secure an exparte motion to compel both the Independent National Electoral Commission (INEC) and the Attorney-General of the Federation, to allow him to stay in office until 30-days to the Election Day.
The court rejected the request, asking Emefiele to notify the two government institutions and also asked the three to appear in court on May 12.
The development has no effect on the stock market where the All-Share Index (ASI) rose 967.45 index points or 1.90 per cent to close at 51,902.48 points up from its previous closing at 50,935.03 points.
Also, the NGX market capitalization which measures the total value of listed equities appreciated by 1.90 per cent or N521.560 billion to settle at N27.981 trillion up from N27.459 trillion recorded the previous trading session.
The huge gain of the market was boosted by the rise in the stock value of large companies. Amongst them are; Nigerian Breweries Plc, Cadbury Nigeria Plc, Royal Exchange Plc, Champions Breweries and International Breweries Plc.
The market turnover decreased by 27.6 per cent as investors transacted a total of 337.564 million units of shares valued at N5.554 billion in 7,684 deals compared to Friday when investors bought and sold 466.280 million shares worth N5.308 billion in 7,442 deals.
Speaking on the appreciation of the market, an Analyst at HighcapSecurities Limited, David Adonri hinged the rise in stocks on the good performance from the first quarter results by a few companies who have released their quarterly reports.
“We are also surprised that the market was upbeat and continue to rally despite the threats. But I feel investors responded to the first quarter results of a few companies that have released their reports. And the results were very impressive,” Adonri said.
“The investors also reacted to positive development like the oil price as compared to negative factors. The price of crude oil continued to increase, OPEC has increased Nigeria’s quota and the good performance of premium stocks like Nigerian Breweries, MTN Nigeria which is currently on fire,” he added.
The market breadth closed positive with 37 gainers compared to 21 declining equities.
Nigerian Breweries led the gainers’ chart in percentage terms by 10 per cent, as the brewing giant closed trading at N77 per share.
Also, Cadbury Nigeria Plc closely followed with a 9.96 per cent gain to close at N14. 90 kobo per share, while Royal Exchange Plc rose 9.90 per cent to close at N1.11 kobo per share.
Champions Breweries and International Breweries Plc appreciated by 9.88 per cent and 9.63 per cent to close at N3. 67 kobo and N7. 40 kobo per share respectively. Conversely, Transcorp Hotels Plc dominated the losers’ chart in percentage terms, losing 10 per cent to close at N4. 05 kobo per share.
In the same vein, Guinness Nigeria Plc declined 9.59 per cent to close at N99. 45 kobo per share, while Multiverse plc dipped 9.09 per cent to settle at N0. 20 kobo per share.
Similarly, Coronation Insurance Plc and Sunu Assurance Plc fell 6.67 per cent and 6.06 per cent to close at N0. 42 kobo and N0.31 kobo per share respectively.
Analysis of the NGX market chart shows that Transnational Corporation Plc closed as the most active stock in volume parameters with 37.75 million shares worth N45.004 million, while Guaranty Trust Holding Company GTCO Plc closed as the most valuable company on the NGX, trading a total of 24.757 million units of shares valued at N580.62 million.
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