Financial markets positive as Buhari orders Emefiele to resign

Financial experts have said that the directive by President Muhammadu Buhari that heads of agencies and departments seeking elective positions should resign, will increase investors’ confidence in the economy.

The governor of the Central bank of Nigeria (CBN), Godwin Emefiele, who is believed to be nursing a presidential ambition is expected to resign in accordance with the order of the president.

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 investors’ confidence as the NGX All Share Index (ASI) and Market capitalization both appreciated yesterday by 0.15% each to close at 52,917.76 points and N28.52 trillion, respectively. The year-to-date (YTD) return moved to 23.88% from 23.70%.

“The news of the President’s directive for heads of agencies and departments interested in elective positions to resign is positive. However, this 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 activities continue to drive activities in the market as gains on selected stocks pushed the key index higher.

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

Market performance in terms of total volume and value of deals was mixed. Total volume of transactions increased by 2.07% to 426.01 million units while the total value of transactions declined by 22.28% to N5.6billion.

Transcorp shares was the most actively traded as the volume printed at 94.3 million units, followed by Zenith Bank with 24.4 million units and WAPCO with 19.2 million units.