By Udeme Ekwere

Friday, 7 Jan 2011

Despite the losses recorded by global stocks on Thursday, the equities segment on the Nigerian Stock Exchange continued on an upward trend.

This week alone, the market capitalisation of the listed equities rose by N448bn from N8.020tn on Tuesday to N8.468tn. This represents an increase of 5.6 per cent.

The NSE‘s All-Share Index also closed at 26,504.76, representing an increase of 5.6 per cent or 1401.83 points.

Other market indices were also on the upswing, as the NSE-30 Index rose by 28.34 points or 2.5 per cent to close at 1,162.85, up from 1,134.51 points.

The NSE Banking Index which recorded the highest rise of the day, increased by 3.1 per cent or 13.28 points to close at 445.26, from 431.98 points the preceding day.

The NSE Food/Beverages Index increased by 0.9 per cent or 7.19 basis points from 797.20 to close at 804.39 points, while the insurance index stood at 174.46 points representing a rise by 1.6 per cent or 2.83 points.

This is coming at a time when other advanced markets like those of the United States and Europe could not pocket the gains recorded in the early days of the new year.

United States stocks opened little changed on Thursday, as an uptick in jobless claims failed to derail sentiment, following much stronger-than-expected gain in private-sector jobs.

Specifically, the Dow Jones industrial average was down 2.15 points, or 0.02 per cent, to 11,720.74, while the Standard & Poor‘s 500 Index dipped 0.04 per cent to 1,276.06.

The Nasdaq Composite Index fell 0.61 points, or 0.02 per cent, to 2,701.59 points.

It was reported recently that the stocks were falling after the US government reported that more people are applying for unemployment benefits.

The Managing Director, Compass Investment and Securities Limited, Mr. Emeka Madubuike, noted that more rebound is expected in the Nigerian capital market.

According to him, this is on the back of the take-off of activities of the Asset Management Corporation of Nigeria, and the expected resumption of the new management team of the NSE.

According to him, these factors will bring the much needed investor-confidence into the market, as well as the stability needed to boost activities.

He said, ”We know that our capital market, and indeed the general economy will be better off with the purchase of the toxic assets by AMCON.”

 

Source: Punch