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NSE investors staked N101bn on stocks in May

By on June 12, 2013

The total value of equities exchanged by investors on the Nigerian Stock Exchange for the month of May stood at N101.03bn.

Findings by our correspondent showed that the amount represented a significant increase of N12.52bn or 14 per cent over the N88.51bn worth of shares exchanged the previous month.

The value of equities represents the value of a company available to owners or shareholders. It is the enterprise value plus all cash and cash equivalents, short and long-term investments but less all short-term and long-term debts as well as minority interests.

In volume terms, 9.104 billion shares were exchanged in the period under consideration. These represent an increase of 18.8 per cent or 1.45 billion shares exchanged by investors at the end of April this year.

Accordingly, the total value of shares traded in the month of May alone is about 15.3 per cent of the total value traded throughout last year.

In 2012, the total value of equities traded on the NSE stood at N658.22bn or $4.23bn, which was an increase of N23.3bn or 3.67 per cent compared on the N634.92bn or $4.18bn recorded at the end of 2011.

The Chief Executive Officer, NSE, Mr. Oscar Onyema, attributed the increased activities to rising level of investor confidence in the market.

This, he added, was also visible from the increase in the major market indicators of the NSE, compared to the figures recorded in the corresponding period of previous years.

Onyema said there had been increased participation in the market by both local and foreign investors, adding that this had translated into the deepening of the market.

He said, “It is important to note at this point that our local investors have started to return to the market and we are very hopeful that we will see more of this going forward this year; we, at the Exchange, are bullish that the market will pick up further this year.

“We will like to state that the Nigerian stock market has been cleaned up to give good returns to foreign investors and our market is too big to be ignored by foreign investors who are looking to take advantage of the opportunities offered by the African markets and other emerging economies, and this is what has kept these investors.”

The Managing Director, Trust Yield Securities Limited, Mr. Rasheed Yusuf, said the good performance recorded by most companies in their 2012 full-year and the first quarter 2013 results had boosted the morale of investors.

This, he said, accounted partly for the increased value and volume traded on the Exchange last month alone.

He, however, said activities might likely be low-keyed by the end of June, adding, “The market may experience occasional fluctuation in the month of June because of dividend payment session and holiday season for most foreign investors.

“However, we hope to see further increase from September when investors will take position in anticipation of the year-end results.”

Yusuf said the market would likely experience impressive growth from the end of September when high net worth investors would strategise for the end of the year.

Analysts from Partnership Investment Company Plc led by the Managing Director, Mr. Victor Ogiemwonyi, said that there had been increased participation of investors in the Nigerian market.

This, they noted, was an indication of the level of returns that investors had recorded in the market within the year.

“Going forward, we expect the stock market to perform well in 2013 due to a number of far reaching initiatives by the regulators. Also, confidence boosting measures by the NSE in trying to enforce compliance by listed firms in filing quarterly reports will no doubt buoy the market,” they said.

 

 

 

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