By Dipo Olowookere
The decision of politicians to stir up the race to Aso Rock in 2023 very earlier in 2022 is already taking its toll on the stock market in Nigeria.
Last week, former Governor of Lagos State and National Leader of the ruling All Progressives Congress (APC), Mr Bola Tinubu, declared his interest to President Muhammadu Buhari to contest the nation’s highest political position next year.
After his open declaration at the Presidential Villa, others started to announce their interest in the same position and the race started to get interesting with some parts of the country rooting for Vice President Yemi Osinbajo, who is believed to be the political godson of Mr Tinubu.
For investors in the capital market, they never expected this to occupy the ecosystem in the first month of 2022. They had thought the race to Aso Rock would get heated up by the second or third quarter of the year.
With the development, some of them had to trade cautiously and this may have caused the decline in the weekly investment in stocks last week.
According to data obtained by Business Post , a total of 1.6 billion shares worth N32.7 billion were traded in 22,607 deals as against the 2.0 billion shares worth N59.0 billion transacted in 15,750 deals in the first week of the year, which only had four trading sessions.
A breakdown showed that financial stocks dominated the activity chart in the week with 731.3 million units valued at 6.5 billion traded in 10,822 deals, contributing 45.71 per cent and 19.92 per cent to the total trading volume and value respectively.
Conglomerate equities trailed with 403.7 million units worth N452.9 million in 1,537 deals, while consumer shares exchanged 314.8 million units worth N17.8 billion in 4,101 deals.
Transcorp, BUA Foods and Jaiz Bank were the most active stocks in the five-day trading week, with the sale of 775.7 million units valued at N16.6 billion executed in 2,644 deals, accounting for 48.49 per cent and 50.82 per cent of the total trading volume and value respectively.
A total of 33 equities appreciated in price during the week, lower than 40 equities in the previous week, while 35 equities depreciated in price, higher than 31 equities in the previous week, with 88 equities closing flat, lower than 84 equities recorded in the previous week.Analysis indicated that BUA Foods was the biggest price riser as its value went up by 24.06 […]