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Investors stake N112bn on shares in first month of 2015

By BusinessNews Staff on February 3, 2015

Investors traded 9.250 billion shares worth N110.761 billion in 97,050 deals at the stock market in the first month of 2015, according to data obtained by THISDAY. The market closed January with a negative performance as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) declined by 14.7 per cent due to the persistent bear run. Despite the decline, the NSE facilitated the exchange of 9.250 billion shares valued at N110.761 billion in the first month.

A review of the performance showed that last week of January accounted for the highest value of trading as investors staked N28.960 billion on 2.210 billion shares in 19,495 deals. The third week followed with N25.941 billion invested in 2.119 billion shares in 21,044 deals, while investors staked N23.377 billion on 2.013 billion shares in 20,902 deals in the second week.

The third week recorded N16.585 billion invested in 1.663 billion shares in 23,591 deals. Just as the first week accounted for N15.898 billion, exchanged in 12,018 deals.

Market operators said the current valuation of stocks is a good opportunity for investors to access the market and increase their stakes. According to them, the market will continued to record significant turnover the bearish trend notwithstanding.

Chief Executive Officer of the NSE, Mr. Oscar Onyema, recently advised investors to take advantage of the low prices of equities and invest in the market.

He said despite the market’s sharp downturn in 2014, it is not all doom and gloom for 2015.

“Although many anticipate volatility through the first half of the year, some stock prices are at their lowest since the May 2013 sell-off, and some are below book value, thus, presenting domestic investors with no currency risk, an opportunity for cautious long-term investing,” he said.

According to him, “We expect that as the year progresses, underpinned by a successful election with no or low levels of violence, a tighter grip on the security situation in north-eastern Nigeria, and a more certain macroeconomic outlook for oil prices, interest rates and the naira, the market’s attractiveness could improve rather significantly. On the fixed income side, government bond yields hovered between 11 per cent and 12.5 per cent throughout 2014, and this will remain an attraction for investors seeking high risk-adjusted returns.”

Onyema had declared that NSE was unwavering in its commitment to solidify its leadership position as Africa’s foremost securities exchange, and is committed to initiatives that will position the bourse as an attractive listing and investment destination.

“In support of the federal government’s reforms, the Nigerian Stock Exchange intends to continue to provide a viable platform to support the financing and sustainable development of the real economy. In 2015, the Exchange will focus on delivering several initiatives in support of its revised strategy,’’ he said.

The NSE boss noted that key focus of the exchange in 2015 will be to: promote the Nigerian capital market as an African hub for growth companies; attract more domestic flows into the market; implement a more competitive price structure in conjunction with the Regulator and other market participants; intensify its efforts towards developing a more sustainable market.

[ThisDay]

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