Local Stock Market Reacts Positively To Election Outcome, Gains N316bn

The Nigerian Exchange (NGX) Limited closed on a positive note last week following the emergence of Bola Ahmed Tinubu as the president-elect, OduNews reports.

Local Stock Market Reacts Positively To Election Outcome, Gains N316bn
Local Stock Market Reacts Positively To Election Outcome, Gain N316bn

The all-share index and market capitalisation appreciated by 1.06 per cent as investors gained N316 billion to close the week at 55,529.21 points and N30.250 trillion

For the first time in several years, the ICT industry outweighed the banking sector to dominate transactions in volume at the end of last week’s trading on the Nigerian Exchange Limited (NGX) floor.

The industry led the activity chart with 601.4 million shares valued at N2.7 billion in 1,607 deals, thus contributing 31.5 per cent to the total equities turnover.

The financial services industry trailed with 585.5 million units worth .9 billion in 8,584 deals while the services industry was third with a turnover of 349.2 million shares worth N2.4 billion in 512 deals.

Trading in the top three equities namely Chams Holding Company Plc, Capital Hotels Plc and Transnational Corporation Plc (measured by volume), accounted for one billion shares worth N2.6 billion in 769 deals. They contributed 54.3 per cent to total equity volume.

In all, a turnover of 1.9 billion shares worth N18.4 billion was recorded in 20,311 deals by investors on the floor of the exchange, in contrast with a total of 799.8 million units valued at N29.4 billion that changed hands in 14,194 deals on February 24, 2023.

The gain was driven by buying interests in Geregu (+31.4 per cent), Buafoods (+10.5 per cent), Dangote cement (+2.2 per cent) and Stanbic IBTC (+18.8 per cent).

All other indices finished higher with the exception of the NGX oil and gas index, which depreciated by 2.36 per cent, while the NGX Sovereign Bond and NGX ASeM indices closed flat.

Analysts predicted a brighter outlook, even as they urged investors to take advantage of the bull run while keeping a tab on /developments both locally and across the globe.

Chief Research Officer of Investdata Consulting Limited, Ambrose Omordion said: “We expect positive sentiments and mixed trend to continue as investors react to impressive earnings and dividend payout.

“Also, the eventual outcome of the presidential election is likely to boost confidence, as other parties move to the court for redress and peace return to the system.”

Cordros Capital said: “In the week ahead, we expect investors to continue to rotate their portfolios toward stocks of companies that delivered decent earnings this week.

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