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•Market capitalisation hits N66 trn
Investors on the floor of the Nigerian Exchange Limited (NGX) intensified their stake in banking stocks on Monday, following positive assurances from top government officials regarding Nigeria’s ongoing economic reforms. This renewed interest pushed the market capitalisation higher by N228 billion to close at N66.693 trillion from N66.465 trillion at the end of trading on Customs Street.
The bullish sentiment was spurred by recent comments from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, who both emphasized that Nigeria’s reform agenda is gaining international recognition and traction.
Edun, while speaking to journalists on the outcome of the spring meetings, underscored the strong endorsement Nigeria’s reforms have received from the international community.
On Cardoso’s part, he noted that Nigeria is increasingly recognised as a rising economic force, admired for the resolve shown in implementing difficult but necessary reforms.
“These achievements, while encouraging, only strengthen our resolve to press forward. We will not be complacent. Instead, we will redouble our efforts to ensure these positive trends are sustained,” he said.
Specifically, the All Share Index (ASI), which opened the trading week at 105,752.61 points, settled at 106,116.18 points, while market capitalisation grew by N228 billion from N66.465 trillion to N66.693 trillion.
Similarly, the likes of FCMB, Fidelity Bank, Guaranty Trust Holding Company (GTCO), Jaiz Bank, United Bank for Africa (UBA), and Wema Bank saw their share prices increase.
Furthermore, the volume of stocks traded stood at 500.594 million units valued at N12.110 billion, which exchanged hands in 17,637 deals.
Accesscorp was the biggest beneficiary of investors’ interest as it sold 60.867 million shares valued at N1.448 billion.
Fidelity Bank traded 56.10 million shares valued at N1.12 billion, while UBA transacted 34.52 million shares worth N1.17 billion.
Market analysts attributed the buying interest largely to investor confidence in the financial sector, particularly the banking industry, which is seen as a major beneficiary of the current macroeconomic adjustments.
“The assurances from Edun and Cardoso have strengthened investor confidence. Players are positioning early in anticipation of stronger earnings growth and improved sector fundamentals,” the Chief Executive Officer of Crane Securities, Mike Eze, said.
According to him, the positive momentum follows a series of policy measures introduced by the CBN, including foreign exchange market reforms, new capital adequacy guidelines for banks, and broader initiatives aimed at fostering macroeconomic stability.
He predicted that the bullish trend could be sustained if macroeconomic conditions continue to improve and banking sector fundamentals remain solid.
Meanwhile, the Naira to Pound exchange rate continued its ascent, rising to N2,122/£1.
The rate had been at N2,110/£1 at the weekend, but investors’ demand soared on Monday at the parallel market.
Daily Sun gathered that businesses are actively seeking to restock goods and acquire raw materials, necessitating higher demand for foreign exchange (FX).
Hamza Ibrahim, who spoke to Daily Sun, said, “Today’s surge in demand for pounds is primarily to facilitate payments for imports, especially from the UK, as companies prepare for upcoming inventory cycles and international transactions. I do not even have pounds now to sell, as I had to even meet my colleague to supply my customer.”
