The Nigerian stock market on Wednesday recovered from its loss to record a total of N16.5 billion gain.
Livestock Feeds Plc led 24 stocks in the appreciation spree.
The market capitalisation of equities listed on the Nigerian Stock Exchange (NSE) bounced back from N10.952tn on Tuesday to N10.965tn on Wednesday.
The All-Share Index settled at 29,202.54 basis points after gaining 0.12 per cent while the year-to-date loss moderated to -7.1 per cent.
Although value traded declined by 19.5 per cent to N2.5 billion net volume traded advanced by 9.9 per cent to 411.2 million to keep a mixed activity level.
Top traded stocks by volume include Transnational Corporation of Nigeria Plc (174.5 million units), Sterling Bank Plc (48.8 million units) and Access Bank Plc (37.6 million units).
Others are Guaranty Trust Bank Plc (N758.5m), Zenith Bank Plc (N240.5m) and Access Bank (N220.1m).
The industrial goods index led decliners, down by 1.3 per cent following sell-offs in Cutix Plc and Cement Company of Northern Nigeria Plc.
The insurance and consumer goods indices witnessed a decline by 0.6 per cent and 0.4 per cent, respectively, after losses in NEM Insurance Plc, Cornerstone Insurance Plc, PZ Cussons Nigeria Plc and Dangote Flour Mills Plc.
Not even the gains by Eterna Plc could stop the oil and gas index from closing flat while the banking index rose by 0.8 per cent on account of bargain hunting in Zenith Bank and FBN Holdings Plc.
Investor sentiment moved from 0.8x on Tuesday to 1.3x on Wednesday.
At the end of trading, top five gainers were Livestock Feeds, Custodian Investment Plc, Learn Africa Plc, Transnationwide Express Plc and NPF Microfinance Bank Plc.
Newly elected World Bank president, David Malpass, warns that nine in every ten extremely poor people across the world will be Africans come 2030.
This was disclosed on Thursday at the ongoing spring meetings of the International Monetary Fund and World Bank Group, holding at the World Bank press conference
Malpass explained that this development will jeopardise the World Bank’s goal to end extreme poverty by that time.
“The Bank’s role is particularly important in poorer countries, where the global economic slowdown that began last year hits people the hardest.
“On current trends, per capita income growth in Sub-Saharan Africa, as a whole, is now projected to stay below 1 percent until at least 2021, which elevates the risk of a further concentration of extreme poverty on the continent.
“This fact is extremely troubling because it jeopardizes the World Bank’s primary goal of ending extreme poverty by 2030.”
Malpass said extreme poverty is on the rise in sub-Saharan Africa despite a global drop from levels seen in the 1990s and 2000s.
“By 2030, nearly 9 in 10 extremely poor people will be Africans, and half of the world’s poor will be living in fragile and conflict-affected settings.
“This calls for urgent action—by countries themselves, and by the global community.”
In June 2018, Brookings Institution had reported that Nigeria had overtaken India as the country with the highest number of extremely poor people in the world.
Christine Lagarde, the Managing Director, International Monetary Fund, IMF, has called on the Federal Government of Nigeria to stop paying subsidy on petrol.
Lagarde, who said this at the ongoing joint annual spring meetings with the World Bank in Washington DC on Thursday, insisted that it was the right thing to do.
The IMF boss also added that with the low revenue mobilisation that existed in Nigeria in terms of tax to Gross Domestic Product, it was important for the country to remove fuel subsidy.
The removal, according to her, would make funds available for improving health, education, and infrastructure.
She said: “I will give you the general principle. For various reasons and as a general principle, we believe that removing fossil fuel subsidies is the right way to go. If you look at our numbers from 2015, it is no less than about $5.2tn that is spent on fuel subsidies and the consequences thereof. And the Fiscal Affairs Department has actually identified how much would have been saved fiscally but also in terms of human lives, if there had been the right price on carbon emission as of 2015. Numbers are quite staggering.
“I would add as a footnote as far as Nigeria is concerned that, with the low revenue mobilisation that exists in the country in terms of tax to GDP, Nigeria is amongst the lowest. A real effort has to be done in order to maintain a good public finance situation for the country. And in order to direct investment towards health, education, and infrastructure.
“If that was to happen, then there would be more public spending available to build hospitals, to build roads, to build schools, and to support education and health for the people.
“Now, how this is done is the more complicated path because there has to be a social protection safety net that is in place, so that the most exposed in the population do not take the brunt of the removal of subsidies principle. So that is the position we take.”