Emefiele’s Removal Excites Investors as Stock Market Gains N1.2trn

By Dipo Olowookere

The Nigerian stock market surged by 3.99 per cent on Tuesday as the suspension of Mr Godwin Emefiele as the Central Bank of Nigeria (CBN) Governor excited investors, who were swayed to mop up some equities.

Last Friday, long after the Nigerian Exchange (NGX) Limited closed for the day, the temporary removal of Mr Emefiele as the apex bank chief was announced.

He was asked to leave office by President Bola Tinubu pending the outcome of an investigation into allegations bordering on terrorism financing. He was later flown from Lagos to Abuja by the Department of State Services over the weekend.

On Monday, June 12, 2023, the bourse did not open its doors to traders due to the public holiday declared by the federal government.

The market only had its first trading session after the suspension of the CBN chief, who has remained unpopular among some Nigerians, especially due to the controversial Naira redesign policy, today.

Investors reacted positively to the development at the stock exchange, with the activity level in the green territory at the close of transactions.

Business Post reports that the trading volume, value and number of deals grew by 106.44 per cent, 214.75 per cent, and 57.23 per cent apiece.

This was because traders transacted 1.2 billion shares worth N19.2 billion in 10,369 deals compared with the 574.7 million shares worth N6.1 billion traded in 6,595 deals in the preceding trading day.

It was observed that banking stocks were the major beneficiaries of today’s buying pressure, with UBA selling 214.9 million units valued at N2.3 billion.

GTCO traded 208.1 million shares valued at N6.2 billion, Zenith Bank transacted 85.7 million equities valued at N2.6 billion, Japaul sold 72.6 million stocks for N37.4 million, and Access Holdings traded 72.1 million shares worth N1.0 billion.

Investor sentiment was strongly bullish during the session as the market breadth index was positive, with 61 price gainers and 13 price losers.

The top five gainers, GTCO, Lasaco Assurance, NASCON, Zenith Bank, and Access Holdings, appreciated by 10.00 per cent each to N30.80, N1.98, N17.05, N30.80, and N14.30 apiece.

The duo of Ellah Lakes and John Holt depreciated by 10.00 per cent each to N3.60 and N1.26, respectively. The Initiate lost 9.62 per cent to settle at 47 Kobo, Caverton shed 4.62 per cent to N1.24, and Veritas Kapital dropped 4.35 per cent to 22 Kobo.

The banking, insurance, consumer goods, industrial goods and energy sectors closed higher by 8.76 per cent, 4.83 per cent, 3.36 per cent, 1.21 per cent, and 0.22 per cent, respectively.

Consequently, the All-Share Index (ASI) increased by 2,232.58 points to 58,163.55 points from 55,930.97 points as the market capitalisation moved up by N1.2 trillion to N31.670 trillion from N30.455 trillion.