Nigerian stocks soared to their pinnacle since 9 June 2008 on Tuesday as the benchmark index enlarged by 4 per cent in response to the news of the arrest over the weekend of Godwin Emefiele, the Central Bank governor.

The new development strengthened optimism that the much-needed liquidity in the market may soon return.

Transaction volume more than doubled compared to the previous session following a much-improved risk appetite that greeted the suspension.

Emefiele’s arrest impacted reactions in the market as his raft of unorthodox policies has kept many investors at bay in recent years.

Foreign participation in the Nigerian equity market had dwindled from N104 billion about the time former President Muhammadu Buhari took over to just N8.5 billion in April, according to the Nigerian Exchange data.

The brisk trade witnessed in the market on Tuesday echoes the general optimism visible across the markets after Emefiele’s arrest, with Nigeria’s dollar bonds jumping to their peak level on Monday this year.

“We expect the prevailing positive sentiments to stir up further buy-interests in anticipation of the H1-2023 earning season. On the other hand, profit-taking activities will weigh on the bourse’s performance, as investors seek to book their gains off profitable counters,” said analysts at United Capital in their outlook note for this week.

“For equity-vested fund managers and investors, we recommend bargain-hunting exercises across fundamentally sound stocks with improved or relatively cheap valuations,” they added.

Market breadth, an indicator of investor sentiment towards trade, was positive as 61 gainers were reported compared to 14 decliners.

The all-share index grew by 2,232.6 basis points to 58,163.6, while market capitalisation climbed to N31.7 trillion. Year to date, the index has returned 13.5 per cent.

Top Five Gainers

NASCON appreciated by 10 per cent to close at N17.05. Access Holdings enlarged by 10 per cent to end trade at N14.30. GTCO rose to N30.80, notching up 10 per cent in the process. Lasaco went up by 10 per cent to N1.98. Zenith Bank completed the top 5, climbing by 10 per cent to N30.80.

Top Five Losers

John Holt led the losers, declining by 10 per cent to close at N1.26. Ellah Lakes shed 10 per cent to end trade at N3.60. The Initiates fell to N0.47, losing 9.62 per cent. Caverton slid to N1.24, recording a 4.62 per cent depreciation. Veritas Kapital closed at N0.22, going down by 4.35 per cent.

Top Five Trades

Altogether, 1.2 billion shares, estimated at N19.2 billion, were traded in 10,369 deals.

UBA was the most active stock, with 214.9 million shares worth N2.3 billion traded in 608 deals. GTCO’s shares of 208.1 million units, priced at N6.2 billion, exchanged hands in 613 transactions. Zenith Bank had 85.7 million shares valued at N309.2 million, traded in 743 deals. Japaul traded 72.6 million shares, estimated at N37.4 million in 216 transactions. Access Holdings traded 72.1 million shares valued at N1 billion in 658 deals.

PT