President Muhammadu Buhari’s assignment of portfolio to the new ministers may have stimulated market activities and increased investors’ appetite for stocks yesterday, as market capitalisation appreciated by N121 billion.
Similarly, other indices also got a lift, as at the close of transactions Thursday, at the Nigerian Stock Exchange (NSE), the All-Share Index (ASI) rose by 294.32 points or 0.09 per cent to 27,352.94 points. Accordingly, investors gained N121 billion in value as market capitalisation rose to N13.307 trillion.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which were; Nestle Nigeria, MTN Nigeria, Ecobank Trans International (ETI), Dangote Sugar Refinery and C&I Leasing.
The Chief Operating Office of InvestData Consulting Limited, Ambrose Omordion, congratulated the ministers, noting that the assigning of ministerial portfolios and the expected policies from fiscal and monetary authorities would trigger the much-needed economic growth and development.
“With real governance kicking off with the ministers being assigned portfolios, it expected that the management of economic information and pronouncements would address investors concerns about the safety of their capital and returns 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.”
Market breadth also closed positive, as 23 stocks posted gains while 16 declined. Honeywell Flour Mills recorded the highest price gain of 9.68 per cent to close at N1.02, per share. ETI followed with 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 9.09 per cent to close at 24 kobo, and Jaiz Bank 8.82 per cent to close at 37 kobo, per share.
On the other hand, Forte Oil led the losers’ chart with 10 per cent to close at N15.30 per share.
Okomu Oil followed with 9.18 per cent to close at N44.50, and Livestock Feeds 8.89 to close at 41 kobo, per share.
Wapic Insurance lost 5.56 per cent to close at 34 kobo, while Access Bank shed 4.62 per cent to close at N6.20, per share.
The total volume traded rose by 73.6 per cent to 363.97 million shares worth N4.52 billion, traded in 3,451 deals. Transactions in the shares of United Bank for Africa (UBA) topped the activity chart with 64.73 million shares valued at N381.92 million.
Access Bank followed with 58.12 million shares worth N372.27 million, while Guaranty Trust Bank traded 43.99 million shares at N1.17 billion.
FBN Holdings traded 36.14 million shares valued at N177.94 million, while Zenith Bank transacted 34.56 million shares worth N608.11 million.