Presidential Election Outcome: Stock Market Advances By N88bn

The Nigerian stock market yesterday rebounded from its previous day lull as investors responded positively to presidential election outcome, strong corporate results and dividend announcements.

The All Share Index (ASI) rose by 161.63 absolute points, representing a gain of 0.29 per cent to close at 55,670.24 points. Also, investors gained N88 billion in value as market capitalisation went up to N30.327 trillion.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Geregu Power, Airtel Africa, Dangote Sugar Refinery, NASCON Allied Industries and PZ Cussons Nigeria.

Reacting to market performance, the managing director of Lancelot Ventures Limited, Mr Adebayo Adeleke said the uptrend seen in the market yesterday can be attributed to the outcome of the election.

He said that “the economic agenda of the presidential elect is quiet sounds, the investors are pleased with the outcome of the election and we can also see the same trend in the Bond market.”

While, the chief operating office of InvestData Consulting Limited, Mr Ambrose Omordion said the market has been bullish  right from the beginning of the year.

He stated that the market is only reacting to financial performance and dividend declared by companies.

He said “the corporate full year earnings and dividend declarations from Ucap, African Prudential, Nascon, Dangote Sugar, Transcorp Hotel and others are expected to support the prevailing strong momentum in the equity space. Already, many companies have notified investors of approvals of their 2022 audited results, and the recommendation of dividends for the period, following which such results should hit the market any moment from now.”

As measured by market breadth, market sentiment was negative, as 25 stocks lost relative to 17 gainers. SUNU Assurance recorded the highest price gain of 10 per cent to close at 44 kobo, per share.

Dangote Sugar Refinery  followed with a gain of 9.94 per cent to close at N19.35, while McNichols up by 9.72 per cent to close at 79 kobo, per share.

Geregu Power rose by 9.02 per cent to close at N325.00, while NASCON Allied Industries appreciated by 8.93 per cent to close at N12.20, per share. On the other hand, Sovereign Trust Insurance led the losers’ chart by 10 per cent to close at 27 kobo, per share. Academy Press followed with a decline of 9.38 per cent to close at N1.16, while Transnational Corporation (Transcorp) shed 7.97 per cent to close at N1.27, per share.

Chams Holding Company lost 7.14 per cent to close at 26 kobo, while Nigerian Exchange Group shed 6.55 per cent to close at N27.10, per share.

The total volume traded declined by 63.6 per cent to 206.110 million units, valued at N3.260 billion, and exchanged in 4,385 deals. Transactions in the shares of Transcorp topped the activity chart with 29.746 million shares valued at N39.150 billion. Access Holdings followed with 18.645 million shares worth N172.316 million, while UAC of Nigeria (UACN) traded 14.021 million shares valued at N118.345 million.

Guaranty Trust Holding Company (GTCO) traded 13.056 million shares valued at N348.628 million, while Zenith Bank transacted 9.276 million shares worth N244.605 million.