Lagos — Market capitalisation on the floor of the Nigerian Stock Exchange in 2012 recorded a notable increase of N2.441 trillion, Daily Trust can report.
It moved from N6.533 trillion it opened during the year to close the year at N8.974 trillion.
The All-Share Index rose from 20,730.63 points to 28,078.81 basis points at the end of 2012, translating to 7,348.18 points increase.
This is the first time in four years that the Nigerian market is making a reasonable attempt to break the long-drawn recession that has seen investors lose a cumulative N8 trillion since March 2008.
The market situation on the NSE also indicates a broad market recovery with gains spread across most sectors.
The NSE-30 Index, which serves as gauge for the market's 30 most capitalised companies, recorded a gain of 412.30 points or 44.6 per cent. The NSE Banking Index and NSE Consumer Goods Index added 65.37 points or 23.84 per cent and 249.37 or 42.29 per cent respectively.
The NSE Insurance Index and Oil and Gas Index however remained an underperformer with a decline of 25.05 points or 17.45 per cent and 67.19 points or 30.53 per cent respectively.
Given the significance of the gains already recorded, analysts are certain that the market would close the year on a bullish note in spite of intermittent profit taking transactions in the last few days of the year.
While responding to the market recovery, the Managing Director and Chief Executive Officer of APT Securities and Funds Limited, Malam Kasimu Kurfi said the market was driven by the half year result declared by most of the quoted companies and reawakening the investors' confidence and bringing inflow of foreign funds.
He said the banking reforms by the Central Bank of Nigeria also yielded positive results.
"The NSE reform, such as releasing companies result as and when due, encouraged informed investors to participate more in the market, introduction of market maker, securities lending, short selling and increase of band limit from 5 per cent to 10 per cent for selected market maker stocks contributed to the recovery," he said.