Markets
Stock Market Gains N1.2 Trillion After Emefiele Suspension
Published
3 years agoon
The recent suspension of Godwin Emefiele, former governor of the Central Bank of Nigeria (CBN) seemed to have ignited positive sentiment in the Nigerian stock market.
With many investors describing Emefiele’s suspension and arrest as a positive development, the Nigerian stock market witnessed a strong rebound on Tuesday.
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President Bola Ahmed Tinubu suspended Mr Godwin Emefiele, CFR, last Friday explaining that it was due to the ongoing investigation of his office and the planned reforms in the financial sector of the economy.
Thus, the market sentiment was boosted by the expectation that the suspension would pave the way for a more transparent and accountable monetary policy, as well as a possible devaluation of the naira to ease the pressure on the exchange rate and inflation.
The benchmark All-share index soared by 4% or 2,232.58 points to close at 58,163.55 points, while the market capitalization increased by N1.22 trillion or 4% to settle at N31.670 trillion.
The suspension of the CBN Governor also triggered a rally in the banking sector, as investors anticipated a positive impact on the liquidity and profitability of the banks.
The NSE Banking Index rose by 6.7% to lead the sectoral performance, followed by the NSE Insurance Index which gained 5.4%.
The NSE Consumer Goods Index and the NSE Oil and Gas Index also advanced by 4.3% and 3.9%, respectively.
Investors also poured into the market as the value of deals transacted rose 55% compared to the last trading day while the volume of deals also rose by about 106%. Market Turnover was up by about 216%.
The market breadth was positive, as 62 stocks appreciated among which the top 10 gained above 9% on the day.
The top gainers were Access Corp, GT CO, NASCON, Zenith Bank, and Lasco all of which gained 10% respectively.
The top losers were Elah Lakes (-10%), John Hold (-10%), Caveraon (-4.6%), Veritas (-4.35%), and Honeywell Flour (-4.29%).
The All-Share Index is 13.49% up year to date as investors continue to react positively to development in the economy.
The suspension of the CBN Governor is a major development that could have significant implications for the Nigerian economy and the financial markets.
Analysts have expressed mixed views on the impact of the suspension, with some arguing that it could create uncertainty and instability in the policy environment, while others opining that it could usher in a new era of reforms and growth.
The market will continue to monitor the situation closely and react accordingly to any new developments or announcements from the presidency or the CBN.
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CPPE Pleads with CBN, Buhari to Review Process of Returning Old Naira Notes
![CPPE Pleads with CBN, Buhari to Review Process of Returning Old Notes The Centre for the Promotion of Private Enterprise [CPPE] has pled with the Central Bank of Nigerian (CBN) and President Muhammadu Buhari to review the process through which Nigerians can return the old naira note they have at hand without losing their hard-earned money. In a statement signed Sunday by its chief executive officer, Muda Yusuf, CPPE beseeched the government to give a human face to the, lamenting that the agony and trauma inflicted by the entire management of the policy is unspeakable. Accordingly, CPPE urged the apex bank to allow the old 1,000 and 500 naira notes to be deposited at the commercial banks to ease the current pains and ordeal of returning the old notes. It further added: “The process should also be simplified to accommodate millions of rural dwellers, the informal sector players, the over 30 million unbanked Nigerians and several millions that are not literate. “The current guidelines which require filling of forms on the CBN portals, generating codes etc. does not reckon with millions of Nigerians that seek to return their old notes who are not literate, who don’t have access to internets and who are in very remote locations in various parts of the country. “They are Nigerians and are entitled to a fair consideration in the implementation process.” The Centre said most of the vulnerable victims of poor execution of the policy are women, microenterprises and small businesses which are contributing immensely to employment, poverty reduction and social stability at the bottom of the economic pyramid of the country. “It is bad enough that their lives and livelihoods have been terribly disrupted and disoriented. “We plead with the CBN to review its processes in the interest of fairness, justice and social inclusion,” the Centre said. Current approach Practically Impossible Meanwhile, the Centre said the current approach being employed by the apex to handle the process is evidently impractical. “It is impractical for the CBN offices to properly handle the process of receiving old currency notes which are still in abundance in the hands of millions of Nigerians. “It noted that there is only one branch of the CBN office in each state of the federation and the FCT. “It is practically impossible for the CBN to manage this process without subjecting our citizens to another round of harrowing experience.” It said the experience and images and disorderliness of the past few days at the CBN offices graphically illustrates this position. Conflicting Directives Businessmetrics reported that the CBN last week issued two conflicting directives within few hours which further heightened tension. While the CBN was believed to have directed Deposit Money Banks (DMBs) in the country to start taking deposit of old 1,000 and 500 naira notes of not more N500,000 from their customers, the apex bank deny same directive hours later which led to more confusion for Nigerians. Nigeria is currently undergoing the process of withdrawing the old version of N1,000 and N500 notes from the system, to be replaced with the redesigned version of the currency notes as well N200 which, President Muhammadu Buhari, however, said would still remain a legal tender in the meantime. In the face of scarce new notes coupled with old notes still held by Nigerians outside the banking system, the February 10 deadline given by the CBN to swap the noted has led to economic disruption and hardship for most Nigerians as they remain cashless.](https://i0.wp.com/businessmetricsng.com/wp-content/uploads/2023/02/WhatsApp-Image-2023-02-20-at-12.13.47-AM.jpeg?resize=400%2C240&ssl=1)
![CPPE Pleads with CBN, Buhari to Review Process of Returning Old Notes The Centre for the Promotion of Private Enterprise [CPPE] has pled with the Central Bank of Nigerian (CBN) and President Muhammadu Buhari to review the process through which Nigerians can return the old naira note they have at hand without losing their hard-earned money. In a statement signed Sunday by its chief executive officer, Muda Yusuf, CPPE beseeched the government to give a human face to the, lamenting that the agony and trauma inflicted by the entire management of the policy is unspeakable. Accordingly, CPPE urged the apex bank to allow the old 1,000 and 500 naira notes to be deposited at the commercial banks to ease the current pains and ordeal of returning the old notes. It further added: “The process should also be simplified to accommodate millions of rural dwellers, the informal sector players, the over 30 million unbanked Nigerians and several millions that are not literate. “The current guidelines which require filling of forms on the CBN portals, generating codes etc. does not reckon with millions of Nigerians that seek to return their old notes who are not literate, who don’t have access to internets and who are in very remote locations in various parts of the country. “They are Nigerians and are entitled to a fair consideration in the implementation process.” The Centre said most of the vulnerable victims of poor execution of the policy are women, microenterprises and small businesses which are contributing immensely to employment, poverty reduction and social stability at the bottom of the economic pyramid of the country. “It is bad enough that their lives and livelihoods have been terribly disrupted and disoriented. “We plead with the CBN to review its processes in the interest of fairness, justice and social inclusion,” the Centre said. Current approach Practically Impossible Meanwhile, the Centre said the current approach being employed by the apex to handle the process is evidently impractical. “It is impractical for the CBN offices to properly handle the process of receiving old currency notes which are still in abundance in the hands of millions of Nigerians. “It noted that there is only one branch of the CBN office in each state of the federation and the FCT. “It is practically impossible for the CBN to manage this process without subjecting our citizens to another round of harrowing experience.” It said the experience and images and disorderliness of the past few days at the CBN offices graphically illustrates this position. Conflicting Directives Businessmetrics reported that the CBN last week issued two conflicting directives within few hours which further heightened tension. While the CBN was believed to have directed Deposit Money Banks (DMBs) in the country to start taking deposit of old 1,000 and 500 naira notes of not more N500,000 from their customers, the apex bank deny same directive hours later which led to more confusion for Nigerians. Nigeria is currently undergoing the process of withdrawing the old version of N1,000 and N500 notes from the system, to be replaced with the redesigned version of the currency notes as well N200 which, President Muhammadu Buhari, however, said would still remain a legal tender in the meantime. In the face of scarce new notes coupled with old notes still held by Nigerians outside the banking system, the February 10 deadline given by the CBN to swap the noted has led to economic disruption and hardship for most Nigerians as they remain cashless.](https://i0.wp.com/businessmetricsng.com/wp-content/uploads/2023/02/WhatsApp-Image-2023-02-20-at-12.13.47-AM.jpeg?resize=80%2C80&ssl=1)