Tinubu’s Ambitious Policies Trigger N1.8trn Equities’ Investors’ Gain in May
Investors in the Nigerian equities market gained N1.8 trillion in May, owing to President Bola Tinubu’s ambitious economic policies, followed up by the riot against oil subsidy on Tuesday, May 30, a day after his inauguration as the new president.
The N1.8 trillion monthly gains came after a single trading day appreciation of N1.52 trillion in market capitalization or a 5.2 percent increase in the market benchmark All Share Index.
This market gain was the highest in the year and about two and half years.
Trading in May opened on May 2, 2023, with the market capitalization at N28, 533,901,225,798.90 while the All Share Index stood at 52,403.51 basis points. But at the close of trading on Wednesday, May 31, the market capitalization rose to N30, 366,715,069,790.07 while the All Share Index rose to 55,769.28. This represents a 3,365.77 basis points increase or a 6.42 percent gain.
NGX Banking Index rose 85.38 basis points or 19.4 percent to close at 523.45 on May 31, up from 438.07 while NGX Main Board Index rose 69.48 basis points or 2.95 percent to close at 2,419.47 on May 31, up from 2,349.99. All other sectoral indices appreciated within the period under review except the NGX ASEM Index which closed flat.
Of the N1.8 trillion total gain recorded in May, the sum of N1.52 trillion representing 83.04 percent of the total gain was recorded on May 30, a day after the new president was sworn in, and announced his administration’s resolve to push for economic reforms.
Tinubu said his administration would target higher Gross Domestic Product (GDP) growth of not less than six percent, which, according to him, would significantly reduce unemployment.
He also advocated a reduction of interest rates to stimulate investment and consumer purchasing in ways that can sustain the economy at a higher level.
Before the Tinubu bull riot on Tuesday, the equities market had been on a tailspin of possible decline. But as of Friday, May 26, the market had recovered N310.702 billion to close at N28.844 trillion following one week of modest gains.
The equities market traded marginally higher on Wednesday as sustained interest in MTNN (+0.40%), BUAFOODS (+5.61%) and GEREGU (+1.68%) lifted the market beyond losses in Tier-1 banking names ZENITHBANK (-2.36%), GTCO (-2.38%) and ACCESSCORP (-0.40%) to keep the broader index in the positive terrain.
The All-Share Index advanced by 0.06 percent to close at 55,769.28 basis points as against the 5.22 percent gain recorded previously to close at 55,738.35 basis points at the end of the last trading session.
In Naira terms, the Market Capitalization recorded an N16.84 billion gain with the year-to-date return standing at 8.82 percent.
Starting the new month, the local bourse extended its bullish run for the fourth consecutive session as the All-Share index gained 0.07 percent to close at 55,808.25 points. Gains in Zenith Bank (+1.72%), GEREGU (+1.59%), and GTCO (+1.05%) outweighed losses in MTNN (-0.44%). ACCESSCORP (-0.81%) and FBNH (-2.78%) keeping the market index on track for another weekly gain.
Consequently, the All Share Index year-to-date return rose to 8.89 percent, while the market capitalization gained ₦21.22 billion to close at ₦30.39 trillion.
However, market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 69.85 percent.
A total of 390.22 million shares valued at N5.73 billion were exchanged in 7,725 deals. ACCESSCORP (-0.81%) led the volume chart with 51.31m units while Zenith Bank (+1.72%) led the value chart in deals worth ₦1.09 billion.
Conoil (+9.92%) led 25 others on the leader’s table while FTN Cocoa -(9.88%) topped 18 others on the losers’ table.
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