Equities market crosses N9trn on FG’s 2017 budget

The equities market of the Nigerian Stock Exchange (NSE) recorded an impressive growth with the Federal Government announcement of N7.298 trillion 2017 budget to the lawmakers, hoping that the recent rise in crude prices would support government spending next year.

The market capitalization crossed the N9 trillion mark to N9.086 trillion following the positive news from the Federal Government.

Surpassing yesterday’s gain, the All-Share Index advanced by 1.29 per cent to close at 26,407.64 basis points. Extended gains in oil and gas names filtered into today’s session and contributed significantly to the positive performance.

Today’s bullish performance increased the Month-to-Date gain to 4.28 per cent and reduced the Year-to-Date loss to 8.06 per cent.

While the volume traded declined by 45.47per cent, the market turnover advanced by 77.40per cent at the end of today’s trading session. Market breadth settled at 3.09x, reflecting thirty-four (34) gainers, as against eleven (11) losers.

Forte Oil topped the gainers’ chart, after appreciating by 10.24per cent to close at N129.10. The counter was trailed by Vitafoam that gained 8.68per cent, Glaxosmith (+7.14per cent), Seplat (+6.71per cent) and ETI (+4.94per cent).

Contrarily, Fidson (-4.51per cent), Champion (-4.21per cent), Airservice (-3.85per cent), Learnafrca (-3.85per cent) and Betaglas (-3.00per cent) led the laggard’s list with their closing prices at N1.27, N2.50, N2.50, N0.75 and N32.00 accordingly.

Measuring market performance, the NSE sector indices showed that all sector returned positive; Oil & gas (+4.26per cent), Banking (+2.42per cent), Industrial goods (+0.98per cent) and Insurance (+0.47per cent) save for Food & Beverages which pared by 0.79per cent.

However, President Muhammadu Buhari on Wednesday presented a record N7.298 trillion budget for 2017 to lawmakers, which he said was an increase of 20.4 per cent on last year’s spending plan.

He said the budget was based on an exchange rate of N305 to the dollar and a projected oil output of 2.2 million barrels per day at an assumed price of $42.5 dollars per barrel.