17 January 2013

Nigeria: NSE Index Hits Four-Year High As Bulls Consolidate

The Nigerian equities market surged further Wednesday with the Nigerian Stock Exchange (NSE) All-Share Index (AS) crossing the 30,000 band to close at 30,093.83. The level of the ASI indicated a four-year high, just as the year-to-date growth(YTD) hit 7.2 per cent.

Bulls have remained in control since the beginning of the week as investors seeking value, take positions in stocks so as to await the impressive returns expected to be announced by companies as from March.

The high demand in the first weeks of the year has, thus, pushed the ASI to a four-year high. The last time the ASI traded above 30,000 points was in 2008.

Apart from the ASI that rose by 1.29 per cent yesterday, the market capitalisation of equities added N130 billion to close at N9.624 trillion. By the close of trading 47 stocks added value while 13 depreciated. UACN Property Development Company Plc and UAC of Nigeria Plc garnered the maximum 10 per cent, while PZ Cussons Nigeria Plc, Academy Press Plc and Fidson Healthcare Plc rose by 9.9 per cent, 9.9 per cent and 9.3 per cent respectively to close as the top five gainers in percentage terms.

Investors traded 622.3 million shares worth N4.971 billion exchanged in 7,442 deals. Analysts at Meristem Securities Limited, expressed optimism that the market would remain positive for the rest two days of the week

"We maintain our projection for the week and expect market to sustain the positive momentum through the week. We advise value seekers to plug into this market recovery to reap impressive returns. However, we recommend position taking in fundamentally justified stocks," they said.

Operators and market analysts had predicted a positive outlook for the market after it posted a growth of 34.5 per cent in 2012.

The Chief Executive Officer of the NSE, Mr. Oscar Onyema, will today give full details of how the Nigerian stock market performed in 2012 a press conference in Lagos.

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