1 January 2013

Nigeria: Stock Market Closes Year On Bullish Note

Activities on the floor of the Nigerian Stock Exchange (NSE) at the close of the last trading day of the year ended in the green territory as hope rose for full recovery of the equities market this year.

Transaction on the Exchange has continued to sustain positive trajectory as the market which closed low at N6.513 trillion in market capitalisation,and 20,671.06 in index at the beginning of trading on January 3, 2012,closed yesterday at N8. 974 trillion and 28,078.81index points.

In an exclusive interview with LEADERSHIP , the managing director, Lambeth Trust and Investment Limited, Mr. David Adonri, said that the Nigerian equities market has year to date appreciated by over 35 per cent.

According to him: "It is one of the best performing markets in the world. Recovery of the Secondary Market for equities has however not translated yet to reactivation of the Primary Market. While the Primary Market for bonds has been very active, the world class Secondary Market bonds platform of The NSE remains dormant."

He noted that if macroeconomic projections for 2013 of single digit Inflation and Interest rates materialised, stability of the Equities Market would be assured.

He stressed the need to deepen the Capital Market with the reactivation of the NSE bond platform, adding that listing of privatised State enterprises and expansion of the Derivatives Market was essential for preventing bubble formation in the Equities Market.

Adonri noted that with the full recovery of the Banking sector, it may still occupy the commanding height of the Equities Market in 2013.

Other sectors with growth potentials according to him includes Agriculture, Food & Beverages and Insurance.

However, at the close of trading, the NSE All-Share Index appreciated by 212.3 points or 0.75 per cent to close on at 28,078.81, while the market capitalisation of the equities rose to N8.974 trillion from 8.906 trillion.

Consequently, 30 stocks appreciated in price, in contrast to 10 others that lost in value. Airservice Plc led on the price gainers' table, adding 10 per cent to close at N4.18 per share, while FCMB Plc followed with a gain of 8.70 per cent to close at N3.75 per share, among other gainers.

On the other hand, Vitafoam Plc led on the losers' table with a loss 3.17 per cent to close at N3.66 per share, while Continental Insurance Plc followed with a loss of 2.56 per cent to close at 76 kobo per share, among other losers.

A turnover of 215.5 billion shares worth N1.6 billion in 2,714 deals was recorded during the day.

Conglomerates subsector boosted by activity in the shares of Transcorp Plc was the most active on the day's activity chart with a subsector turnover of 88.3 million shares valued at N93.6 million traded in 136 deals.

The Banking subsector of the Financial Services (measured by turnover volume) followed during the day with 74.9 million shares worth N607 million exchanged by investors in 1,247 deals. Volume in the Banking sector was largely driven by activity in the shares of UBA Plc and FCMB Plc.

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