Business

Stocks: Investors gain N798bn in one week

Stockbrokers do business on the trading floor of the Nigerian Stock Exchange, on October 8, 2008 in Lagos. Global financial turmoil has battered markets around the world, posing risks to foreign investment and trade that could threaten Africa's recent economic gains, according to experts. Losses highlighted steady declines all year in major African markets with oil-exporter Nigeria off 31 percent from its March high. AFP PHOTO/PIUS UTOMI EKPEI (Photo credit should read PIUS UTOMI EKPEI/AFP/Getty Images)

Investors in the Nigerian stock market recorded N798bn appreciation on their holdings between Friday May 26 and June 2, the last day of trading last week.

The stock exchange’s market capitalisation rose to N10.845tn from N10.047tn in one week.

The All-Share Index, thus, closed at 31,371.63 basis points from 29,064.52 basis points.

Last week was a four-day trading week as the Federal Government declared May 29, 2017 as public holiday to mark the 2017 Democracy Day.

Meanwhile, a total turnover of 2.319 billion shares worth N23.813bn in 22,310 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.877 billion shares valued at N20.055bn that exchanged hands the previous week in 19,979 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.950 billion shares valued at N15.479bn traded in 14,381 deals; thus, contributing 84.12 per cent and 65 per cent to the total equity turnover volume and value, respectively.

The Consumer Goods Industry followed with 156.358 million shares worth N2.875bn in 2,804 deals.

The third place was occupied by conglomerates industry with a turnover of 70.452 million shares worth N168.377m in 739 deals.

Trading in the top three equities namely – Diamond Bank Plc, FBN Holding Plc and United Bank for Africa Plc (measured by volume), accounted for 978.710 million shares worth N4.137bn in 5,028 deals, contributing 42.21 per cent and 17.37 per cent to the total equity turnover volume and value, respectively.

The Chartered Institute of Stockbrokers last week said the confidence of investors in the country’s capital market was gradually returning as could be seen by the positive numbers in recent weeks.

The institute thus urged the government, the Central Bank of Nigeria and other regulators to remain consistent in their resolve to tackle the issues that had held down the economy and the capital market in particular in recent years.

A fellow of the institute, Mr. Umaru Kwairanga, said such positive move would boost investors’ confidence and guarantee market stability.

He said, “The capital market has been on a rebound in 2017, especially, from the end of the first quarter till now. Recent initiatives taken by the CBN to solve the problem of chronic scarcity of forex have boosted the economy and the capital market in particular.

“The All-Share Index has swung into positive territory after months of persistent declines and trading volumes have increased dramatically in the last couple of months. The Nigerian capital market has done quite well in the last couple of months.”

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