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Analysis shows NSE transactions improved in February

By on March 8, 2013

Transactions on the Nigerian Stock Exchange (NSE) improved considerably in February as investors staked N107.78 billion on 13.69 billion shares in 155,992 deals during the month.

These were against the 10.94 billion shares valued at N81.79 billion traded in 128,489 deals in January.

Statistics obtained from the NSE in Lagos on Thursday indicated that the turnover improved by 25.14 per cent during the period.

The NSE market capitalisation rose by N39 billion or 3.83 per cent from N10.19 trillion at the beginning of February to close at N10.58 trillion.

All-Share Index rose by 1221.95 points to close at 33.075.14 in February from the 31,853.19 achieved in January.

Transcorp emerged the most active stock during the review period, accounting for 1.21 billion shares worth N2.17 billion.

Nestle topped the gainers’ chart in February, gaining N68.01 to close at N903.06 per share.

It was trailed by Total with a gain of N12.53 to close at N151.53, while Mobil gained N8.06 to close at N130 per share.

On the other hand, Guinness led the losers’ chart by N16.03 to close at N293 per share.

Julius Berger lost N12 to close at N54 per share, while Flourmill dropped N4.78 to close at N76.50 per share.

Some market operators attributed the market recovery to improved corporate fundamentals and enhanced investor confidence.

Emeka Madubuike, the Managing Director, Compass Securities and Investment Ltd., attributed the growth to new initiatives introduced by stakeholders.

Madubuike said that the market making, short selling and securities lending initiatives had increased the capital market liquidity.

David Adonri, the Chief Executive Officer, Lambeth Trust & Investment Ltd., attributed the growth to massive foreign investment inflow and declining yield on fixed income investment.

Adonri said that equities would likely appreciate higher than its current level if companies’ full year results met investors’ expectations.

He said that reactivation of the bonds trading platform also lured more investors to the market.

Rasheed Yussuf, the Managing Director, Trust Yield Securities Ltd., however, said that the market might experience mixed performance in March as a result of profit-taking by investors.

 

[Daily Times]

One Comment

  1. Vivatolu

    March 8, 2013 at 4:00 pm

    Investor confidence is key!