Experts attribute stable economic outlook to stocks’ upward trend
NAN-HE-10
Outlook
By Chinyere Joel-Nwokeoma
Lagos, June 5, 2017 (NAN) Some capital market operators on Monday attributed the current upward trend on the Nigerian Stock Exchange (NSE) to positive economic outlook, especially the foreign exchange stability.
They told the News Agency of Nigeria (NAN) in interviews in Lagos that the outlook had encouraged local and foreign investors to increase their stakes in the capital market.
Mr Emeka Madubuike, the immediate-past President, Association of Stockbroking Houses of Nigeria (ASHON), said the recovery plan and policies of government were working.
Madubuike said the stability in forex as a result of the Central Bank of Nigeria (CBN) intervention was encouraging.
He added that improvement in oil price above 50 dollars per barrel and increase in daily production due to the peace in the Niger Delta region contributed to the market rally.
Madubuike stated that operators were very happy with the current market drive, especially the government’s effort to ease means of doing business in the country.
“We are very happy for the positive growth being recorded in the market,’’ he said.
Alhaji Rasheed Yussuf, the Managing Director, Trust Yield Securities Ltd, Lagos said the negative macro-economic outlook had held the market down for so long, leading to under valuation of most stocks.
Yussuf said the demand for equities had gone up due to improved audited results released by some companies for the 2016 financial year.
He said the 2016 results boosted investors’ confidence, especially those that were skeptical that the drop in oil prices would affect the banking sector results.
Besides, Yussuf said most stocks, which lost value, had rebounded.
Meanwhile, a turnover of 2.32 billion shares worth N23.81 billion were exchanged by investors in 22,310 deals last week.
This was against the 1.88 billion shares valued at N20.06 billion that were exchanged in 19,979 deals in the preceding week.
The Financial Services Industry led the week’s activity chart by 1.95 billion shares worth N15.48 billion, traded in 14,381 deals.
The sector contributed 84.12 per cent and 65 per cent to the total equity turnover volume and value respectively, during the period under review.
The Consumer Goods sector followed by 156.36 million shares valued at N2.88 billion, achieved in 2,804 deals.
The third place was occupied by the Conglomerates Industry with a turnover of 70.45 million shares worth N168.38 million in 739 deals.
The NSE All-Share Index rose by 2,307.11 points or 7.94 per cent to close at 31,371.63, compared with the 29,064. 52 posted in the previous week.
Also, the market capitalisation, which opened the week on N10.048 trillion gained N797 billion, to close at N10.845 trillion.
FBN Holdings led the gainers’ table in percentage terms by 31.29 per cent or N1.53, to close at N6.42 per share.
UAC Property Development followed with a gain of 25.23 per cent or 54k, to close at N2.68, while Axa Mansard Insurance appreciated by 24.74 per cent or 47k, to close at N2.37 per share.
Conversely, 7UP led the losers’ table in percentage terms by 14.24 per cent or N14.95, to close at N90.04 per share.
Linkage Assurance trailed with a loss of 12.70 per cent or 8k to close at 55k, while Oando shed 10.33 per cent or 93k, to close at N8.07 per share. (NAN)
JNC/JI/PIO
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(Editing by Joseph Idika/Idonije Obakhedo)