By Chioma Obinagwam
The Nigerian Stock Exchange (NSE) has said it recorded 4.03 per cent growth each in its measurement indicators since the upward trend began on Monday.
The daily official list of the NSE for Wednesday, June 06, 2018 indicated.
Extracts from the official list showed that the NSE All-Share index, a major measurement indicator of the Nigerian bourse, which shows a series of numbers that tells the changing average value of the share prices of all companies on a stock exchange, improved by 4.03 per cent from 36,947.10 basis points (bps) on Monday to 38,435.29 bps on Wednesday.
Similarly, Market Capitalisation, another measurement indicator, showing the market value of a company’s outstanding shares on an Exchange, leaped to N13.92 trillion in the day under review from the N13.38 trillion that was achieved on Monday.
The gainers’ table was cloud with 41 stocks, most of which are high cap. stocks as Fidelity Bank, which recently approved a dividend of N3.19 billion at its 30th Annual General Meeting(AGM), led the chart after adding 21 kobo or 9.91 per cent to its N2.12 opening price to close at N2.33.
Oando, though still awaiting the result of its forensic audit, gained 65 kobo or 9.70 per cent even as Diamond Bank closed 14 kobo or 9.46 per cent better.
On the laggards’ side, there was a tie between Mutual Benefits Assurance and Guinea Insurance as both equities shed 2 kobo or 0.5 per cent each from their 40 kobo opening price to close at 38 kobo.
The Nigerian Police Force Microfinance Bank(NPFMCRFBK) dipped by 8 kobo or 4.73 per cent whereas May & Baker shaved 11 kobo or 4.15 per cent.
Reacting to the performance of the equities market, Charles Fakrogha, Chief Relationship Officer at Foresight Securities, an indigenous financial services and solutions firm stated that although the market is reacting to market dynamics, the upward trend may not be sustained because of lack of strong fundamentals to support it.
“The market is dynamic. For any market to be a real market, prices must go up; prices must come down. So, we’ve seen some of the factors of the economy that has made the prices of some of these equities to go down and some have gotten down to the level that the only option is for them to rebound and that’s what we’ve seen from Monday,” Fakrogha said.
“This rebound, this trend, is not going to be sustained for a very long time because there are no strong fundamentals to support what we’re experiencing in the market. It is just an issue of frequent buying and selling; that’s what we’re experiencing in the market today.
However, as we begin to approach the end of the second quarter, maybe some investors are positioning themselves,” he disclosed.
In all, investors traded a total of 383.12 billion shares in 5,285 deals.
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