Investors net worth on the Nigerian Stock Exchange appreciated by 9.31 per cent in May from the 0.96 per cent loss in April, the News Agency of Nigeria reports.
Statistics from the NSE for the period showed that All-Share Index increased by 2,356.94 points to close at 27,663.16 against 25,306.22 achieved in April.
The market capitalisation rose by N879 billion or 10.19 per cent to close at N9.500 trillion, compared with a loss of N83 billion achieved in April.
Volume of shares declined by 31.47 per cent with an exchange of 7.86 billion shares valued at N51.96 billion traded in 16,637 deals.
This was against the 11.47 billion shares valued at N33.48 billion transacted in 62,747 deals in April.
The Financial Services Sector remained the toast of investors during the period, accounting for 4.82 billion shares worth N23.10 billion traded in 35,997 deals.
The premium board came second with an exchange of 1.59 billion shares valued at N14.12 billion transacted in 16,637 deals.
The Conglomerate industry trailed with 679.35 million shares worth N1.03 billion achieved in 4,782 deals.
FCMB Group led the gainers’ table in percentage terms by N1 to close at N1.71 per share from 71k per share, indicating an increase of 130 per cent.
Tiger Brands, which opened at N3.03, closed at N5.04, indicating a growth of 66.34 per cent, while Diamond Bank grew by 61.15 per cent to close at N2.24 per share.
Conversely, Caverton led the losers’ chart in percentage terms by 19.08 per cent to close the month at N1.40 against the opening price of N1.73.
UPL lost 18.60 per cent to close at N4.64, having opened at N5.70, while MRS dipped by 18.51 per cent to close at N36.53 against the opening price of N44.83.
Some stakeholders attributed the growth recorded in the market during the period to the passage of the 2016 budget and retention of the Monetary Policy Rate.
A lecturer, Prof. Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University, Lafia, said the Federal Government’s pronouncement that it would release funds for capital projects led to the increased activities.
Uwaleke said the deregulation of the downstream contributed to the growth posted in the period as well as apex bank’s announcement of a flexible exchange rate regime.
Alhaji Rasheed Yussuf, the immediate President of the Association of Stockbroking Houses of Nigeria, said the market reacted positively to the resolution of the 2016 budget impasse.
Yussuf said investors’ expectation of faithful implementation of the capital budget contributed to the current market growth.
Malam Garba Kurfi, the Managing Director of APT Securities and Funds Limited, said foreign investors, who exited the market due to foreign exchange challenges, increased their stakes following the pronouncement on forex by the Central Bank of Nigeria.
NAN.
Trending
- Mohbah: Why he rejected his son, his hair was shaved before I saw his corpse — Father
- Change must begin with the leader, by Hassan Gimba
- YABATECH secures N1.5b grant for girls’ education, skills partnership
- Fubara’s matured jungle and Edan that cannot die, by Festus Adedayo
- President Tinubu needs to check the wheels of governance, by Taiwo Adisa
- SERAP sues 36 governors, Wike ‘over failure to account for trillions of FAAC allocations’
- FAAN gives more details on access gate fees, e-tags
- Alia, at birthday dinner, promises flyover in Otukpo