Former President, Association of Stock-broking Houses of Nigeria Alhaji Rasheed Yussuf, has attributed the current stock market rebound to stable macro-economic policies. Yussuf told newsmen in Lagos that the reversal in market trend was due to assurances that the suspension of the governor of the central bank would not lead to changes in monetary policies.
President Goodluck Jonathan, on Feb. 20, suspended Mallam Lamido Sanusi as Governor of the Central Bank of Nigeria (CBN) and appointed Mrs Sarah Alade as the acting governor. Jonathan also forwarded the name of Mr Godwin Emefiele and Adelabu Adekoya to the Senate as CBN governor and deputy governor designate. He said that government’s pronouncement reinvigorated investors’ confidence in the market after weeks of uncertainty occasioned by the suspension of Sanusi.
“The CBN assurance to defend the naira also helped to stabilise the market,” Yussuf said. According to him, investors are now comfortable that economic policies will be sustained until June when the new CBN governor will assume office. Yussuf expressed optimism that the market stability would be sustained with expectations of improved 2013 audited companies’ results.
The NSE All-Share index appreciated by 1263.15 or 3.30 per cent last week to close at 39,558.89 against 38,295.74 posted in the previous week. The market capitalisation also grew by N406 billion or 3.30 per cent to close at N12.707 trillion from the N12.301 trillion achieved in the corresponding period. Wema Bank led the gainers’ table in percentage terms, appreciating by 21.05 per cent 20k to close at N1.15 per share. Airline Services and Logistics rose by 20.65 per cent or 51k to close at N2.98, while Guinness grew by 17.17 per cent or N29 to close at N197.90 per share.
On the contrary, Academy Press topped the losers’ chart in percentage, shedding 18.11 per cent or 44k to close at N1.99 per share. Oasis Insurance dipped 15.38 per cent or 10k to close at 55k, while IPWA lost 10.34 per cent or 6k to close at 52 per share. A total of 1.81 billion shares worth N26.69 billion were traded in 25,342 deals last week against the 6.97 billion shares valued at N24.44 billion in 27,633 deals in the preceding week. The Financial Services sector led the activity chart with 1.46 billion shares worth N12.75 billion in 15,493 deals. The Conglomerates followed with a turnover of 109.22 million shares valued at N648.478 million traded in 1,274 deals. The consumer goods sector had 97.33 million shares worth N11.31 billion traded in 3,809 deals.