A day to the end of the year, the market capitalisation of the Nigerian Stock Exchange (NSE) yesterday inched to a historic high of N12.962 trillion as Nigerian equities advanced further.
Even at the 2008 peak of the market before the crash, the capitalisation stood at N12.6 trillion. However, a sustained gains by oil and gas stocks led by Oando Plc and other stocks in the banking sub-sector propelled the market capitalisation to a historic level of N12.962 trillion yesterday. Similarly, the NSE All-Share Index closed at 40,472.13, bringing the year- to-date (YTD) growth of the ASI 44 per cent. However, the ASI is yet to hit its 2008 pre-crash peak of 63,000.
At the close of trading yesterday, 42 stocks appreciated while 14 depreciated. Oando Plc led the price gainers gaining the maximum 10 per cent to close at N22 per share. The equity has been enjoying a renewed demand following its successful raising of N30.7 billion from the capital market via a special placing. The raising of the fresh capital has brightened the hope of Oando concluding the acquisition of ConoCo Phillips Nigerian assets, which has a scheduled completion date of January 31, 2014.
An elated Group Chief Executive Officer of Oando Plc, Mr. Wale Tinubu had said: A significant portion of the proceeds will be used to finance the closure of our upstream asset acquisition process; a transaction we believe will transform us into a major indigenous producer of oil in Nigeria. The inherent value to our esteemed shareholders is evident, as we look to grow our asset base and income streams, whilst at the same time enlarging the portion of revenue we are able to declare as profits, through the increased margins the upstream business offers us."
Market activity level, measured by volume and value increased by 12.4 per cent and 60.3 per cent to 432.7 million shares and N3.85 billion respectively compared with last Friday's performance