Emefiele’s Suspension: Nigerian Stock Market Hits 15-Year High, Investors Pocket Over N1.2trn on First Trading

Emefiele’s Suspension: Nigerian Stock Market Hits 15-Year High, Investors Pocket Over N1.2trn on First Trading

  • The Nigerian stock market has hit a 15-year high with a 4% surge in market capitalisation, reaching N31.6 trillion
  • As a result, investors have reacted positively to the suspension of CBN Governor Godwin Emefiele, leading to a rally in the banking sector
  • On the first trading day after his suspension, stock investors raised bets across banking and other value counters on the Nigerian Bourse

The Nigerian stock market experienced significant growth on Tuesday, June 13, 2023, with market capitalisation soaring by 4% (N1.22 trillion) to reach N31.6 trillion.

The strong rebound was attributed to investors' positive response to the suspension of Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), by President Bola Tinubu, Punch reports.

The benchmark all-share index also saw a 4% increase, rising by 2,232.58 points to close at 58,163.55 points.

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Nigeria stock market
Nigerian stock market investors made over N1.22 trillion within hours. Photo credit: NGX
Source: Facebook

Furthermore, investor confidence was reflected in the substantial rise in the value and volume of deals transacted, increasing by 55% and 106%, respectively, compared to the previous trading day.

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Data shows that market turnover on Tuesday also witnessed a significant surge of 216%.

Nigeria's banking stock after Emefiele's suspension

The banking sector gained the most as investors anticipated that the suspension of Emefiele would positively impact the liquidity and profitability of banks.

On Tuesday, the NSE Banking Index led the sectoral performance with a 6.7% rise, followed by the NSE Insurance Index, which also gained 5.4%.

UBA and FBNH, among the top five banks, also experienced year-to-date increases of 33% and 43%, respectively. r-to-date increases of 68%, 33.9%, and 28.3%%, respectively.

UBA and FBNH, among the top five banks, also experienced year-to-date increases of 33% and 43%, respectively.

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Strong trades and performance after one day of trading

  • GTCO: N6.12bn (+10.00% to N30.80)
  • Zenith: N2.52bn (+10.00% to N30.80)
  • UBA: N2.24bn (+9.55% to N10.90)
  • MTNN: N1.27bn (+3.60% to N259.00)
  • Access: N984mn (+10.00% to N14.30)
  • Fidelity: N422mn (+5.55% to N6.09)
  • Lafarge: N389mn (+8.91% to N28.10)
  • Nestle: N377mn (+0.00% to N1,250.00)
  • Union Bank: N356mn (+0.00% to N7.05)
  • FBNH: N345mn (+2.84% to N14.50)
  • DanSugar: N339mn (+9.52% to N23.00)
  • Airtel: N325mn (+7.78% to N1,289.00)
  • DanCem: N295mn (+1.34% to N286.80)
  • Presco: N243mn (+6.83% to N178.30)
  • Nigerian Breweries: N227mn (+6.83% to N42.75)

Expert speak

Gilbert Ayoola, a capital market expert explains that stock market is known for its volatility, and prices can fluctuate rapidly in response to various economic, political, and social factors.

He noted:

"Why it is very tempting to take profit when the market looks high, successful long-term investors understand that the stock market is a long-term game, and that short-term fluctuations are part of the natural ebb and flow of the market.

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“They do not panic when the market experiences a downturn, and they resist the temptation to sell their stocks at the first sign of trouble. Instead, they maintain a disciplined investment strategy that is focused on their long-term financial goals.
“A disciplined investor has a clear investment plan that is based on their financial goals, risk tolerance, and time horizon. They stick to this plan even when the market is volatile or when other investors are making impulsive decisions based on fear or greed.”

Zenith Bank chairman Jim Ovia makes over N13bn in 5 hours, buys more shares

In another report, Legit.ng revealed that Jim Ovia, the owner of Zenith Bank, has purchased additional shares in his bank.

The new shares were purchased after he made over N13 billion from President Tinubu's inaugural speech.

He made money between 9:30 and 14:30, the trading hours of the Nigerian stock market.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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