Business News

NGX Upswing Slows to 0.06% as Investors Think Through Tinubu’s Policy Direction

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited marginally grew by 0.06 per cent on Wednesday as investors thought through the policy direction of the administration of President Bola Tinubu.

On Tuesday, the stock exchange witnessed an upswing of 5.22 per cent due to the assurance Mr Tinubu gave investors on Monday during his inauguration speech.

At the event held to swear him in as Nigeria’s 16th President, the former Governor of Lagos State said he would target at least 6 per cent GDP growth and unify the exchange rate regimes.

He also announced the removal of the petrol subsidy, which immediately triggered panic buying across the country.

Yesterday, many Nigerians suffered the ripple effect of this announcement, with the Nigerian National Petroleum Company (NNPC) Limited releasing a new pump price for its retail stations across the country. The energy firm said in Lagos, fuel would now sell for N488 per litre, and in other states in the Southwest region, it would go for N500/litre and N537/litre in Abuja.

This and others gave equity investors something to worry about, impacting the outcome of the bourse, as investor sentiment was weak, with 39 price losers and 30 price gainers.

Business Post reports that the financial services sector was bearish yesterday, with the insurance counter losing 2.52 per cent and the banking sector declining by 2.46 per cent.

Also, the industrial goods index went down by 0.19 per cent, while the consumer goods and the energy sectors closed higher by 2.08 per cent, and 1.63 per cent, respectively.

The All-Share Index (ASI) closed in the green territory in the midweek session after it rose by 30.93 points to 55,769.28 points from 55,738.35 points, while the market capitalisation grew by N17 billion to N30.367 trillion from N30.350 trillion.

The trio of Veritas Kapital, McNichols, and Jaiz Bank gained 10.00 per cent during the session to settle at 22 Kobo, 77 Kobo, and N1.21 apiece, as Conoil rose by 9.96 per cent to N57.95, and MRS Oil improved by 9.93 per cent to N44.85.

Conversely, NASCON shed 9.79 per cent to N15.20, RT Briscoe declined by 9.76 per cent to 37 Kobo, GSK dwindled by 9.58 per cent to N7.55, Caverton fell by 9.35 per cent to N1.26, and Deap Capital slipped by 9.09 per cent to 20 Kobo.

At the market on Wednesday, traders transacted 661.5 million shares worth N19.0 billion stocks in 10,024 deals, in contrast to the 1.1 billion shares worth N15.8 billion traded in 9,916 deals on Tuesday, representing a decline in the trading volume by 38.65 per cent, an increase in the trading value and the number of deals by 20.25 per cent, and 1.09 per cent apiece.

Access Holdings sold 98.7 million shares valued at N1.2 billion, UBA traded 90.2 million stocks worth N891.6 million, Zenith Bank transacted 44.5 million equities for N1.3 billion, GTCO exchanged 39.6 million stocks worth N1.1 billion, and Sterling Bank sold 34.2 million equities valued at N69.1 million.

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