Investor sentiment turned bullish during trading on the Nigerian Stock Exchange (NSE) on Wednesday, August 21, 2019 as President Muhammadu Buhari inaugurated and assigned portfolios to ministers on the day.
The All Share Index (ASI) rose by 294.32 points or 0.09 per cent to 27,352.94 points. Accordingly, investors gained N121 billion in value as market capitalisation went up to N13.307 trillion.
The upturn was largely due to gains recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, MTN Nigeria, Ecobank Trans International (ETI), Dangote Sugar Refinery and CI Leasing.
The Chief Operating Officer of InvestData Consulting Limited, Ambrose Omordion congratulated the newly appointed ministers, saying that the inauguration of the new federal cabinet and the expected policies from fiscal and monetary authorities would stimulate the much-needed economic growth and development.
“With real governance kicking off with the ministers being assigned portfolios, it expected that the management of economic information and pronouncements will address investors concerns about the safety of their capital and returns on investment,” Omordion said.
“It is very important that there is effective coordination between the fiscal and monetary authorities, if the economy will make any headway going forward. This should come in the form of constant synergy among policy-makers to boost confidence in the system again.”
Market breadth closed positive as 23 stocks posted gains while 16 stocks posted declines. Honeywell Flour Mills recorded the highest price gain of 9.68 percent, to close at N1.02 per share. ETI followed with a gain 9.60 percent to close at N6.85, while AXA Mansard Insurance appreciated by 9.41 per cent to close at N1.86 per share.
Union Diagnostic & Clinical Services went up by 9.09 percent to close at 24 kobo, while Jaiz Bank appreciated by 8.82 percent to close at 37 kobo per share. On the other hand, Forte Oil led the losers’ chart as its value dropped by 10 percent to close at N15.30 per share. Okomu Oil followed with a decline of 9.18 percent to close at N44.50, while Livestock Feeds went down by 8.89 percent to close at 41 kobo per share. Wapic Insurance lost 5.56 percent to close at 34 kobo, while Access Bank shed 4.62 percent to close at N6.20 per share.
The total volume traded rose by 73.6 per cent to 363.97 million shares, worth N4.52 billion, and traded in 3,451 deals. Transactions in the shares of United Bank for Africa (UBA) topped the activity chart with 64.73 million shares valued at N381.92 million. Access Bank followed with 58.12 million shares worth N372.27 million, while Guaranty Trust Bank traded 43.99 million shares valued at N1.17 billion. FBN Holdings traded 36.14 million shares valued at N177.94 million, while Zenith Bank transacted 34.56 million shares worth N608.11 million.
