The equities segment of the Nigerian Stock Exchange might have reacted positively to the inauguration of new ministers, as market capitalisation gained N135bn or 1.01 per cent to close at N13.441tr against N13.306tn recorded on Wednesday, August 21.
Also, the All-Share Index, which opened at 27,352.94 rose by 276.72 points or 1.01 per cent to close at 27,629.66 due to gains by some blue chips.
The Chief Executive Officer of Sofunix Investment and Communications, Sola Oni, ascribed the upward trend to the swearing-in of the ministers, which is seen as a symbol of commencement of economic recovery.
“Stock market is never static. It responds to companies’ performance either good or bad, demand and supply and speculation, also called market hearsay.
“Beyond this, it aggregates investors’ reaction to information from the economic and political landscape.
“Our market is forward-looking and investors buy into future of companies with the expectation of better returns.
“But the same investors are ready to offload once they are not comfortable with an available piece of information from the political and economic landscape.
“In the process of upswing and downswing, real investors take position, while speculators change position,” the chartered stockbroker said.
Analysts at United Capital said, “Notably, market participants took the crystallisation of the swearing-in with some positivity, perhaps with the expectation that hastened fiscal policies and implementation of plans might revive the nation’s lacklustre growth.”
The market breadth closed positive with 22 gainers and 13 losers.
Nestle maintained its dominance, leading the gainers’ table with N20 to close at N1,220 per share.
MTN Nigeria Communications followed with a gain of N2 to close at N138, while Dangote Cement improved by N1 to close at N167 per share.
Stanbic IBTC increased by 70k to close at N35, while Ecobank Transnational Incorporated went up by 65k to close at N7.50 per share.
On the other hand, Okomu Oil topped the losers’ chart, dropping by N4.35 to close at N40.15 per share.
MRS trailed with a loss of N2.05 to close at N18.80, while Unilever dipped 90k to close at N27 per share.
NCR lost 55k to close at N4.95, while UPL declined by 16k to close at N1.44 per share.
The banking equities remained the most sought after, as investors continued to buy into interim dividend payment banks.
Consequently, Zenith Bank emerged investors’ delight, accounting for 54.31 million shares worth N977.54m.
Guaranty Trust Bank, which recently declared an interim dividend of 30k, came second with 38.21 million shares valued at N1.03 billion.