Nigerian stocks surged on Tuesday, breaking a 15-year record, days after the suspension of the former CBN Governor, Emefiele.
The benchmark index increased by 4 percent, reaching a peak last seen on June 9, 2008.
There is renewed hope for crucial liquidity strengthening in the market.
In response to Emefiele’s suspension, the transaction volume more than doubled compared to the previous session.
This alleviated the lingering risk posed by his suspension.
Jameela News learned that Emefiele’s arrest had kept investors away due to his unorthodox policies in recent years.
According to Nigerian Exchange data, foreign participation in the Nigerian equity market declined from N104 billion when President Buhari assumed office in 2015 to a disappointing N8.5 billion in April.
The rapid increase in trading observed in the market on Tuesday reflects the overall optimism across the markets following Emefiele’s suspension and the rise in Nigeria’s celebrated dollar bonds on Monday.
An analyst at United Capital stated, “We anticipate the prevailing positive sentiments to generate further buying interest in anticipation of the H1-2023 earning season. However, profit-taking activities may weigh on the bourse’s performance as investors seek to realize gains from profitable counters.”
“For equity-vested fund managers and investors, we recommend engaging in bargain-hunting exercises across fundamentally sound stocks with improved or relatively cheap valuations.”
Market estimates reveal the growth in trading, with 61 gainers reported compared to 14 decliners.
The all-share index grew by 2,232.6 basis points to reach 58,163.6, while the market capitalization rose to N31.7 trillion. Year to date, the index has returned 13.5 percent.
NASCON appreciated by 10 percent, closing the day’s trading at N17.05.
Access Holdings increased by 10 percent to conclude trade at N14.30.
GTCO soared to N30.80, recording a 10 percent gain.
Lasaco increased by 10 percent to N1.98.
Zenith Bank made it to the top 5 by climbing 10 percent, closing at N30.80.
Leading the list of losers was John Holt, declining by 10 percent to close at N1.26.
Ellah Lakes lost 10 percent, concluding trade at N3.60.
The Initiates dropped to N0.47, recording a 9.62 percent decline.
Caverton decreased to N1.24, experiencing a 4.62 percent downturn.
Veritas Kapital ended at N0.22, with a decline of 4.35 percent.
In total, 1.2 billion shares, estimated at N19.2 billion, were traded in 10,369 deals.
UBA recorded the highest trade volume with 214.9 million shares worth N2.3 billion, traded in 608 deals.
GTCO’s shares followed with a distant 208.1 million units, valued at N6.2 billion, exchanged hands in 613 transactions.
Zenith Bank traded 85.7 million shares valued at N309.2 million, in 743 deals.
Japaul had 72.6 million shares, estimated at N37.4 million, traded in 216 transactions.
Access Holdings accounted for 72.1 million shares valued at N1 billion, in 658 deals.