Equities market appreciates by N992bn amid free float of naira
The domestic equities market on Wednesday sustained its upward trend by N992 billion, spurred by positive investors’ sentiment following reports of the Central Bank of Nigeria (CBN) allowing the naira to freely float at the I&E Window and the well-received suspension of the apex bank Governor, Mr. Godwin Emefiele.
The All Share Index (ASI) gained 1,821.51 basis points or 3.13 per cent to close at 59,985.10 basis points. Also, market capitalisation gained N992 billion to close at N32.662 trillion.
President Bola Tinubu in his inaugural address had expressed the desire to unified exchange rate.
He had said: “The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.
“Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level.”
According to industry experts and multilateral lenders like the International Monetary Fund (IMF), the harmonisation of the rates and removal of subsidy will improve the attraction of the Nigerian economy to foreign investors and also help the government channel useful funds into more productive ventures like infrastructural investment, education and healthcare.
However, the upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Nigerian Breweries, Presco, Lafarge Africa, Nigerian Exchange Group and Cutix.
As measured by market breadth, market sentiment was positive as 70 stocks gained relative to 13 losers. Dangote Sugar Refinery, FBN Holdings (FBNH), International Breweries, Seplat Energy, Transcorp Hotel, MTN Nigeria Communications (MTNN) and Sterling Financial Holdings Company recorded the highest price gain of 10 per cent each to close at N25.30, N15.95, N5.50, N1,320, N12.10, N284.90 and N2.75 respectively, per share.
TotalEnergies Marketing Nigeria followed with a gain of 9.99 per cent to close at N306.10, while NASCON Allied Industries rose by 9.97 per cent to close at N18.75 per share.
On the other hand, Pharma Deko led the losers’ chart by 9.65 per cent, to close at N2.06 per share. Computer Warehouse Group (CWG) followed with a decline of 9.44 per cent to close at N1.63, while Northern Nigeria Flour Mills (NNFM) declined by 8.66 per cent to close at N12.65 per share.
BUA Cement depreciated by 6.52 per cent to close at N86.00, while Ardova Plc declined by 5.06 per cent to close at N16.90 per share.
The total volume traded advanced by 9.28 per cent to 1.297 billion units, valued at N21.080 billion, and exchanged in 11,947 deals.
Transactions in the shares of United Bank for Africa (UBA) topped the activity chart with 230.764 million shares valued at N2.744 billion. Guaranty Trust Holding Company (GTCO) followed with 125.470 million shares worth N4.205 billion, while Zenith Bank traded 119.144 million shares valued at N3.972 billion.
Access Holdings traded 92.792 million shares valued at N1.450 billion, while Fidelity Bank sold 75.621 million shares worth N494.144 million.
