At the backdrop of a lack-luster performance of equities in the first quarter 2017 (Q1’17) there seems to be a recovery in the last month of the quarter, as NSE market review for the period indicated that investors recorded N114 billion gains at the end of March. The market lost N330 billion in Q1’17.
The consumer goods sector towered above all other sectors in terms of return-on-investment recording 8.1 per cent return, while the banking sector came farther down at the bottom of the ladder with 0.1 per cent return, a development capital market operators attributed to low investors’ confidence in banking stocks as the profits recorded so far are tied to foreign exchange gains. Consumer goods sector, according to them are in line to benefit from further foreign exchange reforms as the Naira continues to strengthen against the dollar.
Also, the financial services sector driven by activities in the insurance stocks, buoyed activities in the market in terms of volume traded with the sector accounting for 14.13 billion of total traded volume during the month.
Specifically, at the close of trading session on Friday, the market capitalisation which represent investors’ wealth appreciated by N114 billion to N8.83 trillion from N8.72 trillion it closed on Wednesday, March 1, 2017. This represents 1.3 per cent increase. The other market metric, the All Share Index, rose to 25, 516.34 basis points from 25,183.10 points.