16 January 2013

Nigeria: NSE Outshined UK FTSE, NASDAC, FAC in 2012

The Nigerian and Egyptian stock markets were the most recompensing stock markets globally in 2012, beating exchanges in Europe, USA and Asia, THISDAY checks have revealed.

The Nigerian stock market came second behind Egypt as investors garnered 35.45 per cent Year-to-Date (YTD) returns from the local bourse.

The Nigerian Stock Exchange (NSE) All Share Index or ASI finished the year at 28,078.80 with market capitalisation of N8.974 trillion. Nigeria came in 2nd place behind Egypt while Kenya ranked third.

The Egyptian stock market was the most profitable, with YTD of 49.56 per cent. YTD from the Ghana Stock Exchange (GSE) was 35.45 per cent, while South Africa returned 23.81 per cent to investors.

The US Dow Jones Industrial Average closed the year with YTD of 6.40 per cent, NASDAC Composite Index 13.95 per cent, UK FTSE All share index 8.61 per cent, France FAC 40 index 14.80 per cent and German Dax index, 29 per cent.

YTD from China's Hang Seng was 23.90 per cent, India BSE 30 index 25.82 per cent and Japan Nikkei 225, 22.94 per cent.

The return profile shows that African markets were most attractive as gauged by the level of returns, followed by markets in the Asia/ Pacific regions.

Reacting to the development, analysts at Investment One Financial Services Limited, formerly GTB Asset Management Limited, stated that the development show that returns potential in developed markets of Europe and America are thinning out.

They added that this situation left African and other emerging markets as more viable alternative markets.

THISDAY findings also showed that the bulk of the returns on NSE came from the NSE-30 selected stocks with 44.61 per cent YTD return. The Food and Beverages sector led with a return of 42.27 per cent followed by the banking sector with a 23.91 per cent return.

Meanwhile, the Nigerian stock market again recorded a strong performance last week, closing the week on strong footing; top on the list amongst 94 markets around the world, based on YTD performance (in dollar terms).

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