NSE investors’ net worth increases by N438bn in 5 days

By Chinyere Joel-Nwokeoma

Investors net worth on the Nigerian Stock Exchange (NSE) appreciated by N438 billion or 3.94 per cent last week, due to new liquidity by some institutional investors to latch on low price of equities.

Statistics obtained on Monday from the exchange, showed that the market capitalisation during the period inched N438 billion to close the week at N11.562 trillion, against N11.124 trillion in the preceding week.

Also, the All-Share Index which opened at 29,830.70 rose hybrid 1,174.47 points or 3.94 per cent, to close at 31,005.17, amid gains by some highly capitalised stocks.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the growth to renewed buying interest in big capitalised stocks, ahead of earnings season regardless of election uncertainties.

Omordion said that institutional investors with long-term view of the market were taking advantage of low prices of some blue chips to position for 2019 dividend declaration.

He said that aggressive bargain hunting for major blue chips stocks such as Dangote Cement and Nestle contributed to the growth posted during the period under review.

“Since the market rebounded on a strong buying sentiment on Jan. 10, the NSE Index has seen a significant rally that broke out the first and second resistance levels of 30,576.90 and 30,911.20 respectively,’’ Omordion said.

He said that the United States Consumer Price Index (CPI) which dropped by 30 basis points in December 2018 to 1.9 per cent, from 2.2 per cent in the previous month, would likely support rebound of stock markets and the economies of developing nations.

“This was the lowest since July 2017, and it is below the two per cent target set by the U.S. Federal Reserve (Fed).

“This is expected to reduce pressure in the emerging markets as Fed is likely to leave rate unchanged for first quarter of 2019.

“This will support rebound of stock markets and the economics of developing nations, if this recovery in oil price is sustained and trade dispute resolved,’’ Omordion said.

A total turnover of 1.27 billion shares worth N13.46 billion in 16,476 deals were traded by investors during the period.

This was in contrast with a total of 1.27 billion shares valued at N14.07 billion achieved in 19,278 deals in the corresponding period.

The Financial Services Industry led the activity chart in volume terms with 1.13 billion shares worth N10.573p billion traded in 10,352 deals.

The sector contributed 89.06 per cent and 78.54 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 37.74 million shares valued at N1.63 billion in 2,054 deals.

The third place was Conglomerates Industry with a turnover of 37.69 million shares worth N102.92 million in 566 deals. (NAN)