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Stock market returns positive as confidence surges

By on April 4, 2015

The gains in the Nigerian Stock market over the last two sessions have helped the Nigerian Stock Exchange All-Share Index and market captialisation to erase the losses made this year.

Spurred by the successful completion of the presidential election, investors had rushed back to the market on Wednesday lifting the NSE ASI by 8.33 per cent, its biggest ever jump in a single day.

On Thursday, the ASI appreciated by an additional 3.92 per cent to close at 35,728.12 basis points, a development that had seen it progress into positive zone with a +3.09 per cent year-to-date return.

On its part, the market capitalisation of the listed equities advanced by 3.92 per cent or N514bn to close at N11.621tn.

Fifty-five stocks recorded price appreciation on Thursday while 11 others depreciated. A total of 65 stocks had appreciated the previous day with only three declining.

GlaxoSmithKline Consumer Nigeria Plc topped the gainers, rising by 10.24 per cent or N4.74 to close at N51.04 per share; followed by Guaranty Trust Bank Plc, which gained 10.20 per cent or N2.95 to close at N31.88 per share.

Oando Nigeria Plc was up by N10.14 per cent or N1.62 to close at N17.60 per share, while Forte Oil Plc and United Bank for Africa Plc gained 10.13 per cent and 10.07 per cent to close at N215 and N4.92 per share, respectively.

Okomu Oil Plc was the day’s biggest loser, shedding 4.91 per cent or N1.46 to close at N28.29 per share; followed by Fidson Healthcare Plc and Trans-Nationwide Express Plc, which fell by 4.75 per cent and 3.88 per cent to close at N3.41 and N1.24 per share in that order.

Market operators and experts had attributed the performance of the market on Wednesday to the peaceful conduct of the election and, particularly, the acceptance of the result by Jonathan, which has set the stage for a peaceful transition, is responsible for the record performance of the stock market as it greatly boosted investor confidence.

The Managing Director and Chief Executive Officer, Cowry Asset Management, Mr. Johnson Chukwu, had, however, explained that while the political uncertainty had been removed, the economy was still in trouble.

He stressed that while the country had solved the critical problem within the political transition, there were still grave problems facing the economy.

He said, “The economic fundamentals have not changed one bit. Your reserves have gone to $29.79bn, average crude is about $62, demand for your crude by your major importer is declining, production is not likely to increase overnight so your foreign reserves will keep depleting.”

 

[Punch]