The Nigerian stock market posted significant growth on Tuesday as market capitalisation soared by four per cent (N1.22tn) to N31.6tn.
The strong rebound by the Nigerian stock market came as investors welcomed the news of the suspension of the CBN Governor, Godwin Emefiele, by President Bola Tinubu
Tuesday’s trading day also saw the benchmark all-share index soar by four per cent or 2,232.58 points to close at 58,163.55 points.
The suspension of the CBN Governor is said to have triggered a rally in the banking sector, as investors anticipated a positive impact on the liquidity and profitability of the banks.
The NSE Banking Index rose by 6.7 per cent to lead the sectoral performance, followed by the NSE Insurance Index which gained 5.4 per cent.
Access Bank, GTCO, and Zenith Bank went up 68 per cent, 33.9 per cent, and 28.3 per cent year to date. UBA and FBNH which make up the top 5 banks also went up 33 per cent and 43 per cent year to date respectively.
The NSE Consumer Goods Index and the NSE Oil and Gas Index also advanced by 4.3 per cent and 3.9 per cent, respectively.
Investors went all in as the value of deals transacted rose 55 per cent compared to the last trading day. The volume of deals also rose by about 106 per cent. Market Turnover was up by 216 per cent.
The top gainers were Access Corp, GT CO, NASCON, Zenith Bank, and Lasco, which gained 10 per cent respectively.
The top losers were Elah Lakes (-10 per cent), John Hold (-10 per cent), Caveraon (-4.6 per cent), Veritas (-4.35 per cent), and Honeywell Flour (-4.29 per cent).
The All Share Index is 13.49 per cent up year to date as recent economic policies continued to boost investors confidence.
President Bola Ahmed Tinubu suspended Mr Godwin Emefiele last Friday following an ongoing investigation of his office and some planned reforms in the financial sector of the economy.
According to a Bloomberg report, Tuesday’s market activity represents a 15-year high, going back to July 2008.
“An improvement in the economy will enhance the performance of companies operating in the market,” head of research at Lagos brokerage Chapel Hill Denham, Tajudeen Ibrahim told Bloomberg.
