THE Nigerian Stock Exchange, in April, closed on a positive note as market capitalization which opened the month at N10.496 trillion, gaining N1.190 trillion to close at N11.786 trillion!
In the same vein, the All-Share Index hit 2,963.29 points to close at 34,708.11 basis points, from 31,744.52 points which it started the month’s trading.
According to ENCOMIUM Weekly’s investigations, a total of 10.72 billion shares valued at N103.42 billion were exchanged by investors in 107.8 million deals in the month of April.
Expectedly, the banking sector led the market with 8.550 billion shares worth N63.55 billion, exchanging hands in 61,640 million deals.
Bolstered by the outcome of the 2015 presidential election, the capitalisation of equities in the first week of April gained a whopping N1.8 trillion to close at N12 trillion! Also, the All- Share Index equally pushed the Africa’s biggest stock market to about 16.9 per cent week-on-week positive return.
In that same week, the market posted the highest daily gain of 8.4 per cent on the day following the announcement of General Muhammadu Buhari as Nigeria’s president-elect.
Against the backdrop of the bullish market sentiment, all sectoral indices also closed stronger. Market analysts had expected the momentum in the equity market to strengthen, especially now the earlier tensed political situation in the economy has seemingly eased. They also anticipated slight profit taking in the weeks ahead.
Expectedly, there has been a measure of stability in the Nigerian stock market as investors gradually return to business.
ENCOMIUM Weekly reports that despite marginal loses occasioned by the generally weak economy, Nigerian investors are cashing in on the momentum of market rebound to recoup their earlier losses.
From almost N14 trillion, at its best, the Nigeria stock was diminished to N9 trillion in the months preceding the general elections. Also attributed to the crash of stocks was capital flight, the falling oil price, foreign exchange crisis, devaluation of naira and depletion of the nation’s foreign reserves.
But with the election over and its dark cloud of uncertainty settled, the stocks are now on the rise again, as investors rake in over N1 trillion last month.
– UCHE OLEH