November 27, 2017

Some capital market operators on Monday predicted that the Nigerian Stock Exchange (NSE) All-Share Index would likely close 2017 with over 40 per cent growth.

The operators told the News Agency of Nigeria (NAN) in Lagos that the nation’s bourse would likely emerge as number one in frontier markets and emerging markets with a growth of 40 per cent going by the current trend.

Malam Garba Kurfi, Managing Director of APT Securities and Funds Ltd., said that barring unforeseen circumstances the Nigerian stock market would emerge the best performing market in 2017.

Kurfi said that the NSE All-Share Index had currently preformed beyond expectations with a growth of 10,491.29 or 39.04 per cent at Nov. 24, to close at 37,365.91, compared with 26, 874.62 it opened with for the year.

He stated that the market capitalization, which opened for the year at N9.250 trillion, grew by N3.76 trillion or 40.64 per cent to close at N13.009 trillion on Nov. 24.

NAN reports that the index in 2016 declined by 6.2 per cent in 2016 to close at 26,874.62, while the market capitalisation lost N600 billion to close at N9.250 trillion.

A total turnover of 2.18 billion shares worth N22.79 billion were exchanged by investors in 17,019 deals last week.

Kurfi attributed the market growth to foreign exchange policies introduced by the Central Bank of Nigeria (CBN), which created stability in the foreign exchange market.

He said that the policy attracted more foreign investors to the Nigerian market, thereby creating liquidity and investors’ confidence.

Kurfi said that the apex bank must strengthen the policy to boost foreign investors’ participation and sustain market growth.

He also said that improved earnings reports, released by most quoted companies contributed to the market growth.

Kurfi said further that prompt release of nine months reports by about 75 per cent of the quoted companies gave investors the opportunity to decide on their investment plans.

Mr Ambrose Omordion, the Chief Operating Officer of InvestData Ltd., stressed the need for alignment in monetary and fiscal policies to boost productivity.

Omordion said that fiscal and monetary authorities must work together to achieve desired growth and development.

He called for early passage and implementation of the 2018 proposed budget to kick-start economic activities.

NAN reports that a turnover of 2.182 billion shares worth N22.79 billion were exchanged by investors in 17,019 deals last week.

This was against a total of 2.80 billion shares, valued at N54.78 billion which exchanged hands last week in 17,792 deals.

The financial services sector led the activity chart with 1.76 billion shares, valued at N11.57 billion, traded in 8,730 deals.

The sector contributed 80.44 per cent and 50.76 per cent to the total equity turnover volume and value, respectively.

The consumer goods industry followed with 178.15 million shares, worth N8.66 billion in 4,457 deals.

The third place was occupied by services industry with a turnover of 143.82 million shares, worth N92.48 million achieved in 470 deals.

The NSE All-Share during the period appreciated by 662.33 points or 1.80 per cent or to close at 37, 365.91 compared with 36,703.58 posted in the corresponding week.

Also, market capitalisation which opened at N12.774 trillion rose by N235 billion or 1.84 per cent to close at N13.009 trillion.

Dangote Sugar led the gainers’ table in percentage terms, increasing by 20.32 per cent or N2.91 to close at N17.24 per share.

Linkage Assurance followed with a gain of 14.29 per cent or 8k to close at 64k, while International Breweries gained 11.97 per cent or N6.20 to close at N58 per share.

On the other hand, Forte Oil topped the losers’ chart in percentage terms, shedding 17.73 per cent or N8.62 to close at N40 per share.

GlaxoSmithkline trailed with a loss of 9.70 per cent or N2.45 to close at N22.80, while C & I Leasing was down by 7.64 per cent or 11k to close at N1.33 per share.