Nigerian Stocks reached their highest level since June 9th, 2008 on Tuesday as the benchmark index increased by 4% in response to the news that the central bank governor, Godwin Emefiele, had been detained over the weekend.
The latest event increased hope that the market’s much-needed liquidity would soon return.
Following a markedly enhanced risk appetite that greeted the suspension, transaction volume more than quadrupled when compared to the previous session.
Since many investors have shied away from Mr. Emefiele’s array of unconventional initiatives in recent years, his arrest had an influence on market movements.
According to statistics from the Nigerian Exchange, foreign investment in the country’s equities market had decreased from N104 billion around the time that former President Muhammadu Buhari assumed office to barely N8.5 billion in April.
The brisk trading seen on Tuesday reflects the widespread confidence felt by investors following Mr. Emefiele’s detention, with Nigeria’s dollar-denominated bonds reaching their highest level of the year on Monday.
“We anticipate that more purchase interest will be sparked by the current favorable feelings in advance of the H1-2023 earning season. However, as investors attempt to book their profits off lucrative counters, profit-taking activities would have a negative impact on the performance of the stock exchange, according to analysts at United Capital, whose outlook paper for this week was seen by reporters.
“For equity-vested fund managers and investors, we recommend bargain-hunting exercises across fundamentally sound stocks with improved or relatively cheap valuations,” the authors continued.
Market breadth, a measure of how investors feel about trading, was favorable as 61 gains and 14 losses were reported.
The market capitalization increased to N31.7 trillion, and the all-share index increased by 2,232.6 basis points to 58,163.6. The index has returned 13.5% so far this year.
The Top 5 Gainers
The price of NASCON increased by 10% to settle at N17.05. Access Holdings increased by 10% to close at N14.30. GTCO increased to N30.80, gaining 10% in the process. Lasaco increased by 10% to N1.98.
Lasaco increased by 10% to N1.98. The final spot on the list was taken by Zenith Bank, which increased 10% to N30.80.
The Top 5 Losers
John Holt was the biggest loss, dropping 10% to settle at N1.26. Ellah Lakes decreased 10% to close at N3.60. The Initiates lost 9.62% and dropped to N0.47. Caverton dropped to N1.24, depreciating by 4.62 percent. Veritas Kapital decreased by 4.35 percent to settle at N0.22.
The Top 5 Trades
10,369 trades totaling 1.2 billion shares valued at N19.2 billion were completed.
With 214.9 million shares worth N2.3 billion changing hands in 608 transactions, UBA was the most active stock. 208.1 million shares of GTCO, valued at N6.2 billion, were traded in 613 transactions. 85.7 million shares of Zenith Bank, worth N309.2 million, were exchanged in 743 transactions. In 216 trades, Japaul exchanged 72.6 million shares for an estimated N37.4 million. In 658 transactions, Access Holdings exchanged 72.1 million shares for N1 billion.