Investors on the Nigerian Stock Exchange (NSE) on Wednesday reacted positively to the inauguration and assignment of ministers to various portfolios by President Muhammadu Buhari.
The All-Share Index rallied by 294.32 points or 1.09 per cent to close at 27,352.94 against 27,058.62 on Tuesday.
The upturn was impacted by gains recorded in medium and large capitalised stocks, among which are; Nestle Nigeria, MTN Nigeria, Ecobank Trans International (ETI), Dangote Sugar Refinery and CI Leasing.
Ambrose Omordion, the chief operating officer, InvestData Ltd, attributed the market growth to the inauguration and allotment of ministers by the president.
Omordion said that investors reacted positively to the news leading to increase in buying interest in anticipation of positive policies from the ministers.
He said the inauguration of the new federal cabinet and the expected policies from fiscal and monetary authorities would stimulate the much needed economic growth and development.
“With real governance kicking off with the ministers being assigned portfolios, it is expected that the management of economic information and pronouncements will address investors concern about the safety of their capital and return on investment.
“It is very important that there is effective coordination between the fiscal and monetary authorities if the economy will make any headway going forward.
“This should come in the form of constant synergy among policy makers to boost confidence in the system again,” he said.
He added that the approval of N600 billion for the revitalisation of the power sector was a good step in the right direction.
Omordion, however, noted that implementation would determine its impact on the economy at the long run.
Market capitalisation rose by 0.91 per cent due to the delisting of Skye Bank Plc and Fortis Microfinance from the NSE Daily Official List.
The Exchange said the delisting of the afore-listed companies was approved by the National Council on May 30, in line with its regulatory delisting process.
It said that the companies were delisted as a result of the revocation of their operating licenses by their primary regulator, the Central Bank of Nigeria.
However, market breadth closed positive with 23 gainers and 16 losers.