Equity trading activities in the Nigerian Stock Exchange took a more positive turn on Thursday with major indicators recording significant growth level.

Specifically, the NSE-Index crossed the 25,000 points mark for the first time in over a year as it rose by 1.2 per cent or 308.61 basis points hit 25,148.48 points.

Similarly, the market capitalisation of the listed shares rose by 1.2 per cent or N98bn to cross the N7tn mark. It stood at N8.005tn up from N7.907tn recorded the previous day, while the NSE-30 Index rose by 1.4 per cent to 1,183.52 basis points up from 1,166.91 points the preceding day.

In December last year, the NSE Index had fallen to its lowest level since December 2003, as it plunged by 0.6 per cent or 121.84 basis points to close at 19,829.29, its lowest in eight years since December 24, 2003 when it stood at 19,788.66 points.

The market capitalisation of the listed equities had also dropped by 0.6 per cent or to N6.241tn in the same period.

Market analysts had attributed the development to the mass exit of investors – both local and foreign – from the capital market.

However, the reverse seemed to be the case this year as market experts said that there is growing interest in the market by both foreign and local investors.

This analysts from FSDH Securities Limited noted in their report that, the appreciation in the Index was as a result of the positive growth recorded in the share prices of some stocks.

According to them this included First Bank of Nigeria Plc, Ecobank Transnational Incorporated Plc, Nigerian Breweries Plc, Access Bank Plc and Lafarge WAPCO Cement Plc.

On their own part, analysts from Meristem Nigeria Limited noted in their report that, the ongoing rally in the market is fundamentally justified given low Price earnings ratio of some companies, hence investor’s stake on expected 2012 companies’ positive performance.

“Macroeconomic and exchange rate stability have also rubbed off on the market as declining yields on fixed income diverts funds to the equities market,” they stated.

A total of 37 stocks recorded price appreciation, while 13 stocks lost.

UACN Plc led the price gainers, rising by five per cent or N1.77 to close at N37.18 per share, while Nigerian Breweries Plc also gained five per cent or N6.28 to close at N133.99 per share.

Source: Punch/Udeme Ekwere