Following the recent demand for stocks by foreign portfolio and domestic investors, the stock market made a gain of N2.205 trillion for the first half of 2017.
According to Leadership, the stock market returned fully back to a positive position in April this year, even as analysts attributed the factors responsible for the appreciation in the equity market to the improvement in the first quarter of 2017 results of quoted companies, compared with the corresponding period of last year and the prospect of better performance in subsequent quarters.
Other factors, according to them, include:
- The increase in the supply of foreign exchange, improved crude oil production and price.
- Improved investors’ confidence in the Nigerian economy.
- As well as the financial market, increase in the participation of both the local and foreign investors in the markets and the boost to the economy by the passage of the Petroleum Industry Governance Bill (PIGB).
The Nigerian Stock Exchange All Share Index (NSEASI), which measures the performance of the equity market, appreciated by 6,242.86 points to close at 33,117.48 on June 30, from 26,874.62 at which it opened for the year.
Similarly, market capitalisation gained N2.205 trillion, rising from N9.247 trillion at which it opened trading on January 3, 2017 to close at N11.452 trillion for the half year.
The sectoral analysis of performance of the equities market in the first six months of the year 2017 showed that the banking sub-sector recorded the best performance, followed by Pension, NSE Premium, Industrial Goods, Consumer Goods, Insurance, NSE 30, Oil and Gas index.
The NSE Banking Index gained by 45.08 per cent, followed by Pension with a gain of 42.92 per cent, while NSE Premium went up 31.15 per cent.
Other sectors that went up are Industrial Goods, Consumer Goods, Insurance, NSE 30, Oil and Gas. The only Sub-sector of the market that was down for the period was the Alternative Market index with 1.12 per cent.
For the period under review, market breadth remained positive, with 64 gainers versus 23 losers. May and Baker led the gainers table by 312.77 per cent to close at N3.88 per share. Stanbic IBTC followed with a gain of 120 per cent to close at N33, while Fidson appreciated by 117.19 per cent to close at N2.78 per share.
The chief operating officer of InvestData Limited, Mr. Ambrose Omordion, said this improvement in oil price impacted the government revenue positively to reflect on our reserve that supported government spending.
He added: “The apex bank monetary and exchange policy so far in the year have been a major driver of the economic recovery through its intervention in the forex market which helped to revamp the manufacturing and other sectors productivities by meeting the supply side of the market to relatively stabilized exchange rate that had supported naira appreciation against other currencies and close the exchange gap in the black market.