Investors on the Nigerian Stock Exchange staked N94.61 billion on 8.49 billion shares in 124,215 deals in May, the News Agency of Nigeria reports.
Statistics released by the NSE on Tuesday in Lagos showed that the performance during the month was in contrast to the 7.72 billion shares worth N95.06 billion traded in 120,949 deals in April.
The statistics also showed that the turnover of shares increased by 9.97 per cent.
The Financial Services Sector drove activities in May with 6.88 billion shares valued at N58.34 billion traded in 74,087 deals.
NSE reported that the All-Share Index appreciated by 4354.16 points or 13.02 per cent to close at 37,794.75 per cent from 33,440.57 achieved in April.
It added that the market capitalisation rose by N1.38 trillion or 12.93 per cent to close at N12.08 trillion compared with N10.69 trillion recorded in April.
NAN reports that the growth in capital market indicators was as a result of price appreciation by some blue chips.
Some key drivers of the market growth included Nestle, which crossed the N1,000 share price mark, Dangote Cement, Nigerian Breweries and Flour Mills, among others.
The All-Share Index tracks the growth of the bourse, while the market capitalisation captures the daily worth of all listed securities.
Some stakeholders attributed the growth of the market to enhanced investors’ confidence and impressive 2012 results and dividends declared by some quoted companies.
Emeka Madubuike, the President, Association of Stock Broking Houses of Nigeria, said that the strong fundamentals of most quoted companies had restored the confidence of investors in the market.
Madubuike said: “There is a general feeling and hope among investors that the market is on the recovery path due to initiatives introduced by market regulators to address abuses of the past.”
Madbuike said that the impressive dividends declared by companies were responsible for increased participation by local investors in the market.
According to him, the trend will be maintained throughout the year baring unforeseen circumstances that can lower investors’ confidence.
Madubuike said that the Nigerian capital market would have performed better if things were done the right way.
Alhaji Rasheed Yussuf, the Immediate Past President of ASHON, also attributed the growth to improved 2012 audited results and 2013 first quarter results announced by some companies during the period.
Yussuf said that the market might experience occasional fluctuation in the month of June because of dividends’ payment session and holiday season for most foreign investors.
He said that the market would likely experience impressive growth from September end when high net worth investors would strategise for end of the year.
Yussuf advised market regulators to deepen the new issues segment and offer investors the opportunity to invest in new issues.
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