Stock market records N7.46trn cap, nears full recovery

There is indication that the Nigerian equity market may fully recover this year from the over N8 trillion it lost to the global meltdown of 2008.

Daily Trust can report that the market has witnessed a massive recovery of over N7.46 trillion in the last four years.
Daily Trust checks show that the market capitalisation of the Nigerian Stock Exchange (NSE) only needs N703 billion to hit the N12.642 trillion of all time high recorded before the market crash of 2008.

During the meltdown, market capitalisation fell from a height of N12.642 trillion in March 2008 to all time low of N4.48 trillion in March 2009.

The market capitalisation has so far gained 166.52 per cent as at May 24, 2013 from all time low of N4.48 trillion in March 30, 2009 to close at N11.94 trillion last Friday.

Consequently, the market capitalization last week gained N141 billion, or 1.20 per cent while the NSE ASI appreciated by 1.20 per cent to close on Friday at 37,350.53.

During the week, a turnover of 2.120 billion shares worth of N25.676 billion in 31,806 deals were traded by investors on the floor of the Exchange in contrast to a total of 2.292 billion shares valued at N24.025 billion that exchanged hands last week in 29,048 deals. The Financial Services sector (measured by volume) accounted for 1.484 billion shares valued at N12.673 billion traded in 16,807 deals. The Consumer Goods sector followed with 158.061 million shares valued at N5.679 billion traded in 6,284 deals.

The banking subsector of the financial services sector was the most active during the week (measured by volume) with 1.105 billion shares worth N10.439 billion exchanged by investors in 11,839 deals. Volume in the banking subsector was largely driven by activity in the shares of Skye Bank Plc, Zenith Bank Plc, Access Bank Plc, UBA Plc and Fidelity Bank Plc. Trading in the shares of the five banks accounted for 681.026 million shares, representing 61.65 per cent, 45.89 per cent and 32.13 per cent of the subsector, sector’s turnover and total volume traded during the week, respectively.

The Insurance Carriers, Brokers and Services subsector of the Financial Services sector, was boosted by activity in the shares of Custodian and Allied Insurance Plc followed on the week’s activity chart with a subsector turnover of 220.151 million shares valued at N298.891 million traded in 974 deals.

Daily Trust