Financial markets positive as Buhari orders Emefiele to step down

Financial experts have said that President Muhammadu Buhari’s directive that heads of agencies and departments seeking elective positions should step down will boost investors’ confidence in the economy.

Central Bank of Nigeria (CBN) Governor Godwin Emefiele, who harbors presidential ambitions, is expected to step down as per the President’s order.

The order was given in a circular issued by Boss Mustapha, Secretary to the Government of the Federation (SGF).

The CBN Governor was copied in the circular titled “Ministers, Heads of Government Agencies, Ambassadors and Other Appointees with Political Ambitions to Resign”.

However, analysts at Parthian Securities said the directive will boost investor confidence as the NGX All Share Index (ASI) and market capitalization both rose 0.15% each yesterday to close at 52,917. .76 points and 28.52 trillion naira, respectively. The yield since the beginning of the year (YTD) fell from 23.70% to 23.88%.

“The news of the President’s directive asking heads of agencies and departments interested in elective positions to resign is positive. However, it will not have much impact on the capital market except to increase investors’ confidence in the economy,” Oluwaseun Dosunmu, Head of Research, Parthian Securities limited.

Bargain-hunting activity continues to drive activity in the market, with gains in some stocks pushing the key index higher.

Investor sentiment, as measured by market breadth, was positive at 1.39x, with 32 stocks closing positive and 23 stocks closing negative.

Market performance in terms of total volume and value of transactions was mixed. Total transaction volume increased by 2.07% to 426.01 million units while total transaction value decreased by 22.28% to 5.6 billion naira.

Transcorp shares were the most actively traded with in-print volume of 94.3 million units, followed by Zenith Bank with 24.4 million units and WAPCO with 19.2 million units.