Stock Market Rounds Up Week Barely in The Green

The Nigerian Stock Exchange barely budged today, however the marginal move was a step in the right direction as it closed the week in the green.

The All Share Index appreciated by 5 points today, closing at 20,532.41, 17% Off from its initial position at the onset of the year.

The market was bearish this week due to speculators who cashed in on gains recorded over the past few weeks as Corporate Nigeria reported mostly stellar 3Q numbers.

The banking industry released earning reports that reflected the end of the banking sector crisis and a return to sturdy profitability.

According to research from Renaissance Capital, the Return on Equity for the top-tier banks namely First Bank, UBA, Zenith and GTBank were 17.3%, 7.8%, 15.3%,and 23.7% respectively.

The average Return on Equity for the banking sector was 13.87%, based on a survey of top and mid-tier banks. A return on par or higher than alternative capital market instruments.

Despite the performance of the companies on the NSE, most Nigerians are still weary of the stock market due to the banking sector induced bubble and crash of 2008/2009.

First Bank was the only top tier bank to gain points today, whilst GTBank and UBA remained flat even as zenith shed less than 90 basis points.

Nigerian Breweries was up marginally today, gaining only 4 points.

Dangote Cement was flat today, while Ashaka lost marginally and WAPCO los over 150 points.

NASCON, Dangote Flour and Nestle gained a combined 3.43%, even as Cadbury and Dangote Sugar lost less than 400 points combined.

175 million shares valued at N 2.34 Billion traded hands amongst investors today.