From BAYO AZEEZ (Lagos) –Those who have invested on equities at the Nigerian Stock Exchange (NSE) in the last nine months are surely having the best of time as a result of the year-to-date positive results recorded by the equities segment at the end the third quarter of this year.
According to records from the nation’s bourse, equities investments during the period have yielded an approximated profit of N2.970 trillion, an equivalent of 32.12 per cent growth to jack up the market capitalisation to N12.217 trillion from N9.247 trillion that the year opened.
The positive trend in the market also reflected on the All-Share Index (ASI) which at the end of the third quarter appreciated by 8,565.36 basis points or 31.87 per cent to settle at 35,439.98 absolute points.
Although trading activities within the period have witnessed ups and downs in response to various macro-economic signals just as the market also indirectly lost value to such developments as holidays, festivals and profit-taking, analysts are of the opinion that the capital market is surely improving, compared with what obtained in 2016.
The growth experienced by the market significantly in the second and third quarters is seen as a sheer reflection of various economic measures that have resulted in pulling out of the Nigerian economy from recession it plunged into in the second quarter of 2016.
Speaking in the same at the last Monetary Policy Meeting (MPC) held last week, the CBN Governor, Mr. Godwin Emefiele affirmed the continuing improvement in Nigeria’s external reserves position and the equities segment of the capital market.
He added that foreign reserves position grew to US$32.9 billion at the close of business on September 25, while the All-Share Index (ASI) rose by 7.20 per cent from 33,117.48 on June 30 to 35,504.62 on August 31.
Similarly, the continuing intervention of the apex bank in ensuring foreign exchange liquidity in the country has, to some extent, further restored confidence of foreign investors to return to active participation in the country’s capital market.
The MPC committee also noted the success of the Investors’ and Exporters’ window (I &E) of the foreign exchange market which has brought respite to business deals in the two areas.
“The I&E window has increased liquidity and boosted confidence in the market with over US$7 billion inflow in the last five months,” Emefiele observed.
The year-to-date total transaction value at the Nigerian stock exchange stands at N1.526 trillion, 83.38 per cent higher than N832.31 billion posted in the comparative period of 2016.
NSE data on Foreign Portfolio Investment (FPI) also indicated an 89.19 growth in expatriate participation in the equities market with a record of N699.07 billion transaction value in the reviewed period against N369.56 billion in the same period last year.