Expectations from new cabinet lift NSE’s indices by N12 billion

…Shareholders’ groups seek ministers’engagement with market stakeholders

Expectations by investors that the newly formed federal cabinets would stimulate economic activities and boost performance in the nation’s capital market, yesterday, enhanced the indices, as market capitalistaion that has been on a downward note since last week Friday, closed in an upbeat, appreciating by N12 billion.

Specifically, the market capitalisation went up by 0.12 kobo to close at N9.974 trillion from N9.962 trillion recorded the previous day. The NSE All Share Index increased by 33.66 basis points to 29014.78 points from 28981.12 points traded the previous day.

25 companies constituted the losers chart at the end of yesterday’s trading, as Oando topped the losers chart with 9.67 per cent to close at N7.66 per share.

TransNational Corporation followed with 8.87 per cent to close at N1.85 per share. Cement Company of Northern Nigeria lost 8.25 per cent to close at N8.01 per share. Cadbury shed 4.98 per cent to close at N19.10 per share.
Other losers of yesterday’s trasactions include: AG Leventis, Ikeja Hotel, Champion Breweries, shedding 4.90, 4.86 and 4.80 per cent to close at N0.97, N3.33 and 3.97 per share.

Honywel flourmills dropped 4.78 per cent to close at N2.39 per share. Continental Reinsurance lost 4.72 per cent to close at N1.01 per share.
International Breweries also lost 4.63 per cent to close at N15.26 per share.

On the other hand, 12 stocks recorded price appreciation, as Mansard topped the gainers chart with 4.96 per cent to close at N2.75 per share.

Dangote flourmills followed with 4.76 per cent to close at N2.42 per share. Flourmills added 4.55 per cent to close at N21.85 per share.

Eternaoil and Access bank garnered 4.52 and 4.00 per cent to close at N1.85 and N4.68 per share.

United Bank for Africa gained 3.02 per cent to close at N3.75 per share. Nigerian Breweries added 2.69 petr cent to close at N133.00 per share. FO gained 2.12 per cent to close at N287.98 per share.
Zenith bank and UBCAP also added 1.24 and 0.72 per cent to close at N17.20 and N1.39 per share.

Further analysis showed that ‎ Access Bank Plc recorded the highest activities, exchanging 95.624 million shares worth N445.497 million, Axamansard traded 20.775 million shares valued at N55.898 million, Transnational Corporation of Nigeria sold 13.282 million shares cost N25.949 million.

FBN Holdings traded 11.226 million shares worth N56.364 million aand Multiverse sold 7.875 million shares valued at N3.937 million.

Meanwhile, two shareholders groups have urged the new ministers, especially the minister for finance and industry to engage stakeholders in the nation’s capital market in order to brainstorm on how to move the market forward.

Specifically, the President, Independent Shareholders Association of Nigeria, Sir Sunny Nwosu said: “The minister for trade and investment is from the private sector and he knows where the shoe pinches. If he make himself available, we would enhance his job by engaging him on what is happening in the capital market. We would tell him how the economy has affected the capital market.”

He urged the minister for trade and investment to ensure that he collaborates with the Central Bank of Nigeria to established prudent foreign exchange to boost the real sector.

“We are worried on the high cost of foreign exchange. He has to create prudent forex so that business will grow and people will be able to transfer profit without hindrance. The real sector must wake up, the manufacturing industries, the quoted companies so that other sectors will grow. They must make money available for recurrent expenses.

“For the minister of finance, there is need for the minister to look at the Securities and Exchange Commission (SEC). The minister must have oversight function of SEC more than the Nigerian Stock Exchange because they are the regulator. We have suffered for clear one year and this two people must ensure that the capital market rebounds, ”he said.

The President, Rennaissance Shareholders Association of Nigeria, Ambassador Timothy Olufemi urged the new ministers to ensure effective coordination of all capital market operations.

This, according to him, would improve market activities and restore local investors confidence and participation in the market.