The equities segment of the Nigerian Stock Exchange closed last week on a positive note as major market indicators rose significantly.

The market capitalisation of the listed equities rose by N343bn or 3.1 per cent from N11.170tn recorded at the beginning of last week, to N11.513tn at the close of activities on Friday.

By this, equities have hit a new year high of about 27 per cent and recovered 92 per cent of their losses since 2008.

Similarly, the NSE All-Share Index was up by 1,074.66 basis points or 3.1 per cent to close the week at 36,010.28 basis points, up from 34,935.62 points recorded at the beginning of the week.

The NSE-30 index, which measures the performance of the top 30 stocks on the bourse, gained 3.2 per cent in the same period to close at 1,717.85 basis points, while the NSE Banking Index rose by 4.9 per cent in the same period to close at 416.55 basis points.

Analysts, who spoke with our correspondent, agreed that barring unforeseen circumstances, the appreciation recorded in the market since the beginning of the year would be sustained till the end of the year.

They added that a lot of reforms and strategies undertaken by the management of the Nigerian Stock Exchange and Securities and Exchange Commission had been positive for the market, thus, translating to increased activities.

The Chief Executive Officer, Stanbic IBTC Asset Management Limited, Mr. Olumide Oyetan, said a lot of issues accounted for the increased activities witnessed in the market in the last few months.

He said, “A new cycle has emerged in the market as the reforms in the banking sector have been completed; also, toxic assets and loans have been removed from the books of financial institutions, which has brought about healthier financial institutions.

“Also, the equities market has rallied significantly hitting a year-to-date of over 27 per cent, while retail investors, who largely fled the equities market in the wake of the crises, are warming up to the equities market again.”

On his part, the Head Corporate Services Division, NSE, Mr. Bola Adeeko, said all the vital performance values in the market had bounced back from the critical low to which they backslid and had remained upbeat with the market capitalisation increasing by over 60 per cent in the past year alone.

“With the second quarter of 2013 underway, the NSE has yet again performed better than two of the major stock Exchanges in Africa-Kenya and South Africa having maintained its upward trajectory in the New Year,” he said.

Source: Punch (by Udeme Ekwere)