NSE indices hit N16tr mark, up 1.9 per cent
Transactions on the Nigerian Stock Exchange (NSE), sustained rising profile, following heavy price gains recorded by virtually all the highly capitalised stocks, causing market indices to hit N16trillion mark yesterday.
Also, volume of transactions increased significantly, as a turnover of 960 million shares worth N12billion was exchanged in 8,866 deals, higher than a total of 635.40 million units valued at N7.64billion that changed hands in 7,331 deals on Tuesday.
Specifically, at the close of trading yesterday, the All-share index appreciated by 830.52 points or 1.9 per cent from 44,054.72 recorded on Tuesday to 44,885.24. Also, market capitalisation of listed equities improved by N298billion from N15.782trillion to N16.080trillion.
The Chief Executive Officer, NSE, Oscar Onyema, argued that the rating of the Exchange as the third best performing market in the world, has continued to attract huge investment into the nation’s stock market, adding that investors realised that the market is still very cheap when compared with listed firms’ fundamental.
In addition, Onyema said the foreign exchange exporter window introduced by the Central Bank of Nigeria (CBN) in 2017, contributed to the market growth and boosted the confidence of foreign investors to invest bigger funds.
“People realised that the market is still very cheap when compared with companies fundamental. NSE recovered from the macroeconomic overhang of the commodity down cycle to become the third best performing market in 2017 globally, with a 42 per cent return in the NSE All-Share Index. Market capitalisation rose by 47 per cent in 2017 to N13.62trillion against N9.26trillion posted in 2016.”
He added that a lot of investors were still optimistic that fiscal policies to support the monetary ones would come in very soon to drive the market for the second round of growth.
Furthermore, he explained that political activities ahead of 2019 elections and currency movements would affect the market growth to some an extent, but however noted that the outlook of the market is quite encouraging.
“Indeed, to some extent, political activities and currency movements will have some effect on the market, but we expect that such impacts will be short lived and the performance of the underlying business activities will ultimately determine market performance,” Onyema said.
On the price movement chart, Mobil emerged the day’s highest price gainer with 16.50 kobo to close at N216.00 per share. Dangote Cement followed with 13.00 kobo to close at N273.00 per share.
Guinness added 5.70 kobo to close at N119.70 per share. Betaglas appreciated by 2.69 kobo to close at N56.56 per share. Conoil garnered 1.97 kobo to close at N41.38 per share.Nigerian Breweries topped the losers’ chart with 3.44 per cent to close at N146.05 per share. National Salt Company of Nigeria followed with 1.10 kobo to close at N21.00 per share.
Zenith Bank lost 1.01 kobo to close at N32.50 per share. Cadbury shed 0.80 kobo to close at N15.31 per share. Dangote Flour dropped 0.39 kobo to close at N15.95 per share.
On the activity chart, TransNational Corporation was the investors’ toast with 140 million shares worth N358million, while Sterling Bank followed with 104 million units valued N252million. Wema Bank traded 95 million shares worth N88million. Diamond Bank accounted for 87 million shares worth N275million. Access Bank exchanged 85 million units worth N1billion.
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