Stock market capitalisation records 26.6% growth, hits N11.533trn

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SEPTEMBER 16 ,

2013

Stock market capitalisation records 26.6% growth, hits N11.533trn •Stakeholders lament CBN’s high interest rate •Say it will affect market performance in 2nd half BY PETER EGWUATU & NKIRUKA NNOROM

T

he positive sentiment at the Nigerian stock market at the beginning of the year has continued to impact on performance of the market which has recorded a 26 per cent growth in the last eight months. The market indicators, which are the barometer of the health of the financial market, as at the end of third quarter of 2013 showed that share prices of most of the companies listed in the exchange have risen by 26.6

115.70

-0.55

2,574.00

+31.00

17.09

-0.09

per cent. The average of all the prices gained during the period has caused the value of all shares listed at the stock exchange to hit N11.533 trillion at the end of trading last Thursday, September 12, 2013, compared to the N9.109 trillion it started the year with. Also during the period, the share price of Nestle Nigeria Plc crossed the N1, 000 marks for the first time in the history of Nigerian stock market to close at N1, 088 per share, following high demand by domestic and foreign investors, a mark of the growing confidence by both local and foreign investors in the Nigerian

economy. The Index had opened in the first day of trading in January at 28,078.81 points to close Thursday September 12, 2013 at 36,224.44 points, showing a gain of 29 per cent. Similarly, the market capitalisation rose by 26.6 per cent from N9.109 trillion it opened with in January to N11.533 trillion as at the close of business on Thursday. The stock market ended Thursday with investors trading 150.58 million ordinary shares valued at N1, 732,683. However, the market had reached a new high of above N12 trillion this year before dropping due to the

vagaries of demand and supply of the market. Notwithstanding the positive growth, operators and other stakeholders in the financial market have raised fresh alarm over the continuous retention of Monetary Policy Rate (MPR) at 12 per cent by the Central Bank of Nigeria (CBN), saying it will affect quoted companies’ performance and capital market indices for the remaining part of the year. Analysis of the performance of the capital market showed that the month of August closed at 36,248.53 points, a loss of 151.85 points. Month-to Dateshowed a total loss stands at 2,102 points or 4.40 per cent. Thaddeus Investment Advisors & Research Limited in its opinion of the Nigerian stock market as at August, 2013 said “The top 25 stocks (category A) are institutional interest-driven stocks with minimal retail participation. Category B has a better balance of institutional and retail interest-driven investor participation. We put the ratio at 2:1 with the greater portion going to institutional interest; Category C consists of retail interest-driven stocks Continues on page 22

112.07 -0.56 107.90 -0.70 CURRENCY BUYING CENTRAL DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYA KRONA SDR

154.76 245.4184 206.0939 166.6057 1.5552

0.2934 234.4369 25.2908 41.2638 27.6283 235.0804

155.26 246.2113 206.7597 167.1439 1.5602

SELLING 155.76 247.0042 207.4256 167.6822 1.5653

0.3034

0.3134

235.1943 25.373 41.3971 27.7176 235.8399

235.9517 25.4551 41.5305 27.8068 236.5994

CBN Exchange rate as at 13/09/2013

*From Left; Alhaji Aliko Dangote, President, Dangote Group, Alhaji Bala Mohammed Getso, Managing Director, Giwa Dynamic Ventures Ltd, as First Distributors of the Year, and Alhaji Sanni Dangote, Vice-President of Dangote Group, during the 2013 Awards Ceremony of Dangote Cement Distributors Night, with the theme; 'Cementing Parternships,' held on Wednesday September 11, at Eko Hotel, Victoria Island Lagos PHOTO; Kehinde Gbadamosi C M Y K


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Stock market capitalisation records 26.6% growth, hits N11.533trn by Vanguard Media Limited - Issuu