Nigerian Stock Investors Get Richer Since Tinubu’s Presidency as 11 Companies Record Over 100% Returns
- The Nigerian stock market is reacting positively to President Bola Tinubu’s economic reforms that have led to a sharp rise in the share prices of Nigerian companies
- The investments of at least 11 Nigerian companies have yielded more than 100% value since early 2023, according to the Nigerian Stock Exchange
- Most of the significant stock price appreciations have occurred in the last 23 days of the Tinubu administration, indicating a strong market reaction to the recent reforms
The Nigerian stock market is reacting positively to the ongoing economic reforms embarked upon by President Bola Tinubu since assuming office.
Data obtained from the Nigerian Exchange showed at least 11 Nigerian companies' stocks value have increased by more than 100% since the start of 2023.
Source: Facebook
Why Nigeria's stock market is booming
Legit.ng previously reported that in his inaugural speech, Tinubu ended the expensive fuel subsidy program while promising a house cleaning in the Central Bank of Nigeria (CBN).
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Tinubu's speech was followed by the suspension of the CBN governor, Godwin Emefiele, and various forex reforms, most notably the floating of the naira.
The decisions resonated well with investors and led to a favourable market posture that helped increase the value of Nigerian companies' stocks.
The year-to-date (YTD) positive return of the stock market, as of the end of the trading week on June 16, 2023, is 15.12%.
List of Nigerian companies' stocks and YTD returns
- Tripple Gee: 393.7%
- MRS: 387.6%
- FTN Cocoa: 365.5%
- Transcorp: 209.7%
- Ikeja Hotels: 223.8%
- Conoil: 198.1%
- Lasaco: 164.4%
- AXA Mansard Insurance: 105%
- Eterna: 106.3%
- Northern Nigeria Flour Mills: 126%
- Unity Bank: 85.5%
- Cornerstone: 85%
- Stanbic IBTC Holdings: 89.1%
- Jaiz Bank: 89.1%
- Livestock Feeds: 52.3%
- Academy Press: 54.3%
- RedStar: 54.9%
- Berger Paints: 74.2%
- Total: 74.5%
- PZ: 67.4%
- Access Corporation: 67.6%
- Cadbury: 58%
- Fidelity Bank: 59.5%
- Nascon: 62.2%
- Dangote Sugar Refinery: 43.3%
- Okomu Oil: 43.3%
- ETI: 45.3%
- FBN Holdings: 45%
- UBA: 46.1%
- Oando: 43.9%
- NEM Insurance: 40%
- C&I Leasing: 40.6%
- Honeywell Flourmills: 38.9%
- Flour Mills: 23.2%
- Zenith Bank: 29.2%
- FCMB Group: 29.9%
- GTCO: 33%
- Unilever: 35.3%
- Wema Bank: 23.6%
- MTNN: 27.4%
- Seplat: 20%
- Union Bank: 10.2%
Expert speaks
Gilbert Ayoola, a capital market analyst provided insight on how Nigerians can make money from the rise in the stock market.
He said:
"Investing in the stock market carries its own risks. It's essential to do your research, analyze the company's financials, and understand the industry's trends before making any investment decisions.
"Inflation is also a significant factor to consider when investing, and it's important to make sure that the stocks you choose have a good track record of beating inflation.
"Above all, consult your financial advisor to help you make an informed investment decision."
Aliko Dangote loses over N1.4trn in hours after CBN naira decision
Meanwhile, in another report, Nigerian billionaire Aliko Dangote's wealth has experienced a significant decline of N1.4 trillion following the devaluation of the naira.
The devaluation was triggered by CBN's move to unify the country's multiple exchange rate system.
Most of Dangote's investments, which are linked to his wealth, are based in Nigeria, and the performance of the naira directly affects his wealth.
Source: Legit.ng
