President Tinubu’s Inauguration Speech Boosts Investor Confidence
The Nigerian equities market commenced the week on a bullish note, with investors displaying strong confidence following the inauguration of President Bola Tinubu. In his inaugural speech, President Tinubu highlighted key measures to strengthen the Nigerian economy, including the omission of fuel subsidy from the 2023 budget and the implementation of a unified exchange rate. His assurances to investors regarding repatriation of dividends and profits further fueled positive sentiment in the market.
Impressive Market Performance Driven by Index Heavyweights and Banking Stocks
Driven by the optimistic outlook set by President Tinubu, the equities market witnessed significant gains. The market capitalization soared by N1.505 trillion, representing a 5.22% increase, closing at N30.349 trillion compared to N28.844 trillion on the previous trading day. The All-Share Index (ASI) also rose by 2,764.47 points, settling at 55,738.35, indicating a 5.22% gain. The remarkable performance was driven by key index heavyweights, including MTN Nigeria, Dangote Cement, and BUA Cement, along with notable gains in Tier-one banking stocks such as Guaranty Trust Holding Company (GTCO), Access Holdings, United Bank for Africa (UBA), and Zenith Bank.
Positive Market Sentiment Expected to Continue
Market analysts at Vetiva Securities Ltd. anticipate the enduring positive sentiment in the upcoming trading sessions, attributing it to the favorable response to President Tinubu’s inauguration speech and his proposed plans for the Nigerian economy. With the successful transition of power to the new administration, investors are expected to remain optimistic about the economic prospects, driving further market growth.