Investors in the equities segment of the Nigerian Stock Exchange saw the value of their stocks rise by N232bn in the first three days of this week as increased activities towards the end of the month boosted the shares.
A review of trading statistics for Monday through to Wednesday showed that the market capitalisation of the listed equities rose by 2.21 per cent or N232bn from N10.497tn to N10.729tn.
In the same period, the NSE All-Share Index jumped by 674.6 basis points or 2.21 per cent from 20,543.17 basis points to 31, 217.77 basis points.
On Monday, the market capitalisation had risen by N75bn or 0.71 per cent from N10.497tn to N10.572tn.
The next day, it edged higher by N22bn or 0.21 per cent to N10.594tn before surging on Wednesday by N135bn or 1.27 per cent to N10.729tn.
Commenting on events in the market during the period, the Chief Executive Officer, Enterprise Stockbrokers, Mr. Rotimi Fakayejo, said with the week marking the end of the month and the end of the quarter, it was expected that the gains would have been higher.
However, he said, “Much of the gains is attributable to consumer goods companies and Dangote Cement. If you look at the banking sector stocks, majority of them actually dropped in price even as the month was rounding up.
“All in all, Monday, Tuesday, Wednesday were significant because they marked the end of the month and also the end of the quarter.
“So, the portfolio managers would have gone for some appreciation in their portfolios and used that opportunity to take up more securities so as to beef up what they have and reduce their average cost.
“Although yesterday there was much more value traded than the other days, I think it is just significant for the end of the month and end of the quarter.”
Asked whether the release of the anticipated ministerial list played a role in the performance of the market, Fakayejo explained that it did not weigh heavily on activities.
He said, “It could have, but as of yesterday, that anticipation did not come to play. But now that they said the list has been released partially, I think we may begin to see the market reacting, starting from tomorrow.”
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Source : Punch