Tag Archives: Stock Market

Nigerian Stock Market Gains 3.3% In First Six Months

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The Nigerian stock market closed the first half of the year with a growth of 3.3 per cent compared with a decline of 3.2 per cent in the corresponding period of 2015. Although the market ended on a bearish noted yesterday, in all, it recorded a growth at the end of first six months of the year. The Nigerian Stock Exchange (NSE) All-Share Index (ASI) closed at 29,597.79 on the last day of June, up from 28,642.25 at which it opened 2016.

Market capitalization added N314 billion, rising from N9.851 billion to close at N10.165 trillion yesterday. Analysts said but for the rebound the market recorded recently following positive reactions to the new flexible foreign exchange policy of the Central Bank of Nigeria (CBN), the market would have ended the first half on negative note just last like last year.

After a bearish trend caused by policy flip flops, exchange rate uncertainty and budget delay, the market rebounded two weeks back following the new forex, policy bringing the year-to-date(YTD) growth to the positive territory.

Reacting to the development then, analysts at InvestmentOne Limited had said: “In the immediate, while we expect the ongoing optimism regarding a possible shift to a market-determined exchange rate regime to support market performance. We see the impacts of these events on market performance. However, in the medium to longer term, we see improved performance on the back of efficiency gains from an expansionary fiscal policy leading to improvement in aggregate demand.”
However, profit taking set in reducing the YTD growth to 3.3 per cent yesterday.

The market closed with a decline of 0.7 per cent yesterday depressed mostly by Ecobank Transnational Incorpodated (-3.09 per cent), Seplat Petroleum Development Company Plc( (-2.94 per cent), FBN Holdings Plc (-2.51 per cent), United Bank for Africa Plc(-2.08 per cent); Forte Oil (-1.90 per cent); Zenith Bank (-1.44 per cent); Nigerian Breweries (-1.44 per cent), Dangote Cement (-1.03 per cent)c among others.

According to analyst at Dunn Loren Merrifield, “the current market trend suggests that, optimism that the new CBN FX policy would bring relief to the market particularly on banking stocks is beginning to fade as investor remains sceptical about the policy sustainability and transparency.”

Credit: Thisday

Investors Pump N760bn Into Stock Market In 3 Days

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The unveiling of the new foreign exchange guidelines for the country by the Central Bank of Nigeria has prompted stock investors to pump huge amount of funds into the market.

The Nigerian Stock Exchange reacted positively to the news of the unveiling of the new foreign exchange guidelines by the CBN last Wednesday as the market capitalization soared by over N760bn, with investors committing huge sums to acquire more shares.

The move by investors to acquire more stocks at this time is hinged on their desire to re-enter the market when share prices are at their lowest, as the market is expected to recover after months of persistent fall.

Prior to the three-day straight gains last week, the NSE market capitalization had stood at N9.284tn on Tuesday. But as of the last day of trading last week on Friday, the value of the market had soared to N10.044tn.

Credit: Punch

Nigerian Stock Market Loses N2.354tn In One Year

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The market capitalization (equities only) of the Nigerian stock market has shed a total of N2.354tn in the past year.

The Nigerian Stock Exchange, in its fourth quarter 2014 Fact Sheet, put the market capitalization at N11.478tn; but at the end of trading on Friday, it stood at N9.124tn.

This, therefore, represents a 20.5 per cent drop in the stock market value.

The market had been on a decline for the greater part of this year due to various factors.

In January alone, the renewed dumping of shares by investors at the stock market over uncertainty in the political landscape led to a dip of N1.16tn in the market capitalization of the Exchange in the first three trading days of the year.

Trading on the NSE in 2014 had closed with a decline of 16.1 per cent in the market capitalization, which resulted in the stock market opening 2015 on a bearish note.

The NSE All Share Index, which stood at an average 34,657.15 points in the last quarter of 2014, has fallen to 26,537.36 so far this year, according to NSE statistics released on Friday. This represents a drop of 23.4 per cent.

This trend has further shattered the dreams of the Exchange to stabilize and further grow the market capitalization.

The Chief Executive Officer of the NSE, Mr. Oscar Onyema, had in the early part of this year said that his self-imposed target of achieving $1tn (about N197tn) market capitalization by 2016 was no longer feasible.

Credit: Punch

Stock Market Gets A Boost After Buhari’s Victory

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The Nigerian stock market recorded its biggest rise in a day on Wednesday as investors scrambled to buy stocks following the declaration of Gen. Muhammadu Buhari of the All Progressive Congress as the winner of the presidential election.

At the close of trading, the market capitalisation of the listed equities surged by N904bn or 8.4 per cent from N10.717tn on Tuesday to N11.621tn, with the Nigerian Stock Exchange All-Share Index also rising by 8.4 per cent or 2 635.32 basis points to close at 34 380.14 basis points.

It was the biggest gain recorded by any Exchange all over the world so far this year, the closest being a five per cent gain by Chinese stocks earlier in the year.

According to market operators and experts, the peaceful conduct of the presidential election and, particularly, the acceptance of the result by Jonathan, which has set the stage for a peaceful transition, are responsible for the record performance of the stock market as it has greatly boosted investor confidence.

Wednesday’s gains were spread across all the sectors with all of the five NSE sectoral indices surging as well.

Read More: Thisday