By Udeme Ekwere

The rekindled interest of players, especially foreign investors in the Nigerian capital market helped to boost equity trading activities last week, as major indicators closed higher.

Analysts said this, as well as the peaceful elections experienced the previous weeks, contributed largely to increased activities in the market.

This was visible as trading for last week outperformed that of the preceding week as Nigerian Stock Exchange’s Index rose above 25,000 points, a height not attained in the past three weeks.

Specifically, the NSE’s Index rose by 1.2 per cent or 303.37 basis points to close the week at 25,036.75 points, up from 24,733.38 recorded the previous week.

Similarly, the market capitalisation of the listed equities closed at N7.999tn, representing an increase of 1.2 per cent or N97bn, from N7.902tn recorded the previous Friday.

The NSE-30 Index, which stood at 1,068.82 points at the close of trading the preceding week, rose by 29.53 points or 2.8 per cent to 1,098.35 last Friday, while the NSE Banking Index gained 2.5 per cent or 9.65 basis points from 386.44 to close at 396.09 points.

Speaking to our correspondent on Friday, the Managing Director, Lambeth Trust and Investment Limited, Mr. David Adonri, said that foreign investors had begun to show some interest in the market lately.

“I think what accounts for the consistent improvement recorded in the past week is the fact that some foreign investments have started flowing into the market,” he said.

When asked if the ongoing elections were not enough reason to deter the foreign investors, Adonri said, “You know that these foreign investors are very calculative and they have a way of analysing the market, and so, perhaps there is something that they have seen in the Nigerian market now that makes them feel this is the right time to come in.”

He added that the corporate results declared by major companies quoted on the NSE, as well as the dividends declared, could also have engendered improved interest in the market last week.

To analysts at Meristem Nigeria, the successful National Assembly polls conducted the previous week had increased interest in the market.

“Unperceptive investors have seen the stock market fluctuation as an enemy rather than as a friend. Nevertheless, in the past few days following what we can call a successful national assembly election, the equities market has shown some signs of stability as the bulls seem to be having a stronger hold on daily performance,” they stated.

Corroborating this, the Managing Director, Ideal Securities Limited, Mr. George Okafor, noted that investors seemed to be relieved on the direction of the election.

 

Source: Punch