Mallam Lamido Sanusi
The market capitalisation of the listed equities on the Nigerian Stock Exchange rose by 12.71 per cent or N1.582tn in the second quarter of 2014, expunging losses made in the first quarter.
The market capitalisation, which stood at N12.44tn on March 31, climbed to N14.028tn at the terminus of the second quarter on June 30, 2014.
Developments such as the quantitative facilitating tapering by the United States and the suspension of Mr. Lamido Sanusi as the Central Bank of Nigeria governor had rocked the equities, resulting in a N780bn or 5.9 per cent loss in value in the first quarter.
However, the relinquishment of the first quarter results by the companies, the listing of Seplat Petroleum Development Company and Caverton Offshore Support Group on the NSE as well as ameliorations in the global economy led to a rally by the equities in the second quarter.
The NSE All Share Index, which quantifications the general performance of the major stocks quoted on the Exchange, additionally had a positive second quarter, advancing by 3,734.47 substructure points or 9.64 per cent to close at 42,482.48 substratum points at the cessation of the quarter; up from the 38,748.01 substratum points at which it stood at the terminus of the first three months of the year.
Its year-to-date return, which was negative at -6.25 per cent on March 31, stood at +2.79 at the cessation of the second quarter.
The performance of the stock market was broadly positive as in integration to the major designators, the NSE 30 Index, the NSE Lotus Islamic Index and the five sectoral indices all appreciated in the second quarter. Only the NSE Alternative Securities Market Index declined, albeit marginally by 0.1 per cent in the quarter.
For instance, the NSE 30 Index, a major stock market index that tracks the performance of 30 most liquid stocks, rose by 11.41 per cent or 197.86 substratum points to close the second quarter at 1,931.77 substructure points, up from 1,733.91 substructure points at the terminus of March.
This was in contrast to the nine per cent decline it witnessed in the second quarter.
The Director-General, Securities and Exchange Commission, Ms. Arunma Oteh, had verbalized recently at the Capital Market Committee quarterly meeting in Lagos that major stakeholders were satiated with the performance of the market in the second quarter.
“The second quarter has been particularly fascinating in many ways,” she verbalized.
Commenting on the performance of the market in the second quarter, the Chief Executive Officer, Enterprise Stockbrokers Plc, Mr. Rotimi Fakayejo, verbalized considering that the year-to-date return of the NSE All Share Index was below three per cent, not much had authentically transmuted.
He, however, verbally expressed relative to the first quarter, the second quarter was positive.
Fakayejo verbalized the performance of the NSE Oil and Gas Index, which by 62.46 per cent, far more than any other indices, and the recuperation of several equities were among the factors that boosted the market in second quarter.
“For the first time withal, we visually perceived the market capitalisation elevating above N14tn; it has never got to that caliber. So, that was a great milestone,” he integrated.
Regardless, Fakayejo verbalized the performance of the market in 2014 would not match the caliber in 2012 and 2013 during which it rose by 37 per cent and 47 per cent, respectively.
“I cerebrate the year-end performance will still be up to about seven per cent. I believe we are going to optically discern more positive performances from the companies and the second quarter results will play a role in determining where the market is heading,” he integrated.
Analysts at Meristem Securities Limited had observed last week that “poor first half performances, profit-taking on some counters with consequential gains and fears around the upcoming 2015 general elections remain possible drags to the current positive trend in the market.”
