Equities recorded a muted performance on Monday, the first trading day following the governorship and House of Assembly elections across the country.
Although the market capitalisation of the listed equities rose by 0.75 per cent to N11.991tn, it was a far cry from the historic rise of over eight per cent it recorded following the peaceful conclusion of the presidential and National Assembly elections held on March 28.
Capital market operators told our correspondent that the market, having already soared after the presidential election, which was considered more decisive for the country’s unity, the impact of the governorship and House of Assembly elections were minimal.
The, however, noted that with the elections over, activities in the market would pick up, aiding its recovery.
The Chief Executive Officer, Highcap Securities Limited, Mr. David Adonri, said, “It (Monday’s appreciation) was not very exuberant and euphoric like that of the presidential elections because that of the presidency was the main one. It was what was to make or mar the corporate existence of the country. So, since it did not end in tragedy but ended well, projecting a good image for the country, there was that very exuberant and euphoric reaction.”
He explained that the conclusion of the governorship and House of Assembly election had provided additional reason for optimism by investors.
“The election is over and people have started gradually coming back into the market and other areas of the economy would also start gathering momentum,” he said.
The Chief Executive Officer, Enterprise Stockbrokers, Mr. Rotimi Fakayejo, said the appreciation recorded on Monday was largely due to the performance of individual stocks that did better.
“For instance, Guinness Nigeria Plc gained five per cent, Nigerian Breweries gained and Access Bank also gained,” he said, noting that the gains cut across virtually all the sectors.
With the elections out of the way, Fakayejo said, “I think the major driver now will be events that will precede the inauguration. One other thing that will drive it (the market) in the immediate is the performance of the quoted companies, that is, their first quarter results because that is when we will begin to see the impact of the naira devaluation.
“So, when we begin to see the results then the market will be able to determine whether the present prices can be sustained or whether they can be better than what we are seeing right now.”
Meanwhile, the Nigerian Stock Exchange All-Share Index gained 260.21 basis points or 0.75 per cent to close at 35,190.23 basis points.
A review of other indices showed that six of the eight indicators aside the ASI and the market capitalisation rose.
For instance, the NSE 30 Index gained 0.88 per cent to close at 1,619.39 basis points, while the NSE Banking Index appreciated by 1.9 per cent from 397.84 basis points to 405.39 basis points.
The NSE Lotus Islamic Index, however, fell by 0.84 per cent from 2,298.88 basis points to 2,279.49 basis points, while the NSE Alternative Securities Market Index closed flat at 1,214.94 basis points.
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Source : Punch