Investors trading on the floor of the Nigerian Stock Exchange (NSE) recorded a total gain of N364 billion in three consecutive trading sessions on the back of last Wednesday’s post-election tribunal ruling.
At the start of trading this week, sell pressures in the local bourse persisted as the All Share Index (ASI) shed 0.21 per cent to settle at 27,089.84 points due to drags in Nestle, Stanbic and Access Bank. YTD loss worsened to -13.8 per cent while market capitalisation declined N28 billion to close at N13.128 trillion.
Sell-offs in the shares of Nestle, CCNN and Dangote Cement in Tuesday’s session dragged the benchmark index 0.16 per cent lower at 27,047.58 points. YTD loss worsened to -13.9 per cent while N21 billion was lost in value as market capitalisation fell to N13.158 trillion.
Wednesday’s session saw the equities market record its first gain, as the benchmark index widened by 0.39 per cent to 27,153.53 points – the largest single-day gain since August 23 –, following investors interest in the shares of Nestle and Seplat.
Thus, the Month-to-Date and Year-to-Date losses moderated to -1.73 and -13.94 per cent respectively while Investors gained N52 billion in value as market capitalisation rose to N13.209 trillion.
Thursday’s session saw sustained gains as the index advanced by 1.01 per cent to settle at 27,426.64 points while YTD loss further eased to –12.7 per cent. Accordingly, investors gained N141 billion in value as market capitalisation rose to N13.351 trillion.
Friday’s session saw the ASI climbing up further 1.28 per cent to settle at 27,779.00 points while market capitalisation increased by N171 billion to close the week at N13.522 trillion.
Across sectors as at Sept 12, performance was largely bullish as 5 of 6 indices trended northward. The Consumer Goods index led gainers, up 3.8 per cent due to buying interest in Nestle (+7.1 per cent) and Dangote (+9.4 per cent) while the banking index trailed, up 1.7 per cent following price appreciation in Zenith Bank (+2.5 per cent).
Similarly, the Industrial Goods and Insurance indices rose by 1.1 per cent and 0.6 per cent respectively on the back of gains in WAPCO (+3.1 per cent), CCNN (+2.1 per cent), AIICO (+9.8 per cent) and Cornerstone (+7.1 per cent). The Oil & Gas index inched higher by 0.5 per cent as investors took position in Forte Oil (+9.6 per cent) while the AFR-ICT index closed flat.
Market breadth strengthened as 22 stocks advanced against seven stocks that declined. The top performers were AIICO (+9.8 per cent), Forte Oil (+9.6 per cent) and UAC-Prop (+9.6 per cent) while Jaiz Bank (-5.0 per cent), NPF Microfinance Bank (-4.3 per cent) and Unity Bank (-4.3%) led losers.
Market analysts say that the post election tribunal ruling was the deciding factor that changed the sentiments of investors.
The Presidential Election Petition Tribunal had on Wednesday upheld President Muhammadu Buhari’s re-election.
The tribunal held that Atiku Abubakar and the PDP have failed to discharge the burden of proof of the allegation of non-qualification of President Buhari to contest the February 23 general election. Atiku had told the tribunal to nullify Buhari’s election and declare him the authentic winner of the election.
Delivering judgment, Justice Mohammed Garba, held that evidence before the court showed that Buhari obtained Cambridge West African Examination Council (WAEC).
Garba held that it has been established that a candidate is not required under the Electoral Act to attach his certificate to his Form CF001 before a candidate is adjudged to have the requisite qualification to contest the election.
The tribunal also held that technological facilities like card readers, transmission of election results via server were strange to the country’s laws.
Speaking to Sunday Sun, a stockbroker who craved anonymity said: “The Finance Minister released the Medium Term Expenditure Framework for 2020-2022, which has brought about a measure of how the government intends to spend money and raise money for the medium term.
“I think it is going to the National Assembly and that is what improved market sentinments. Secondly, the ruling verdict that Buhari won has also given foreign investors that things will pretty much remain the same so they can decide where to put their money. “This has brought a measure of stability that things will remain stable in the near-to-medium term”.
Also speaking, President, Pearl Awards, Taiwo Orekoya, noted that even though the market is yet to see the impact of the cabinet, the market will be on the gaining ground.
“The cabinet has just been constituted, but more importantly, there is need for a strong economic team that would put in place the fiscal and the macroeconomic policies that will be sustained over time that will drive activities in the real sector of the economy,” he said.