Investors’ net worth on the Nigerian Stock Exchange (NSE) appreciated by 6.19 per cent in the month of December from the 3.45 per cent achieved in November.
The official statistics provided by NSE showed that the All-Share Index rose by 2408.34 points to close the year at 41,329.19 from the 38,920.85 achieved in November.
The market capitalisation grew by N778 billion to close at N13.226 trillion compared with N12.448 trillion recorded in November.
The volume of shares traded also grew by 5.57 per cent with 10.04 billion shares worth N71.12 billion traded in 90,765 deals.
This was against the 9.51 billion shares worth N95.40 billion traded in 104,233 deals in November.
The financial services sector emerged the toast of investors in December with 6.99 billion shares worth N26.1 billion traded in 45,560 deals.
Some stakeholders attributed the steady growth of the market, in spite of the festive period, to renewed confidence of foreign and local investors in the market.
They said in separate interviews in Lagos that foreign investors’ increased exposure to emerging markets contributed to the growth.
Alhaji Rasheed Yussuf, the immediate past President, Association of Stockbroking Houses of Nigeria (ASHON), said that the growth in economies in the West rubbed off on the nation.
He said that the market performance in 2013 had reinvigorated investors’ expectations in 2014.
Yussuf said that investors’ growing stake in the market was in anticipation of enhanced dividend in the financial year ended Dec. 31, 2013.
He said that investors based their stakes on current performance of stocks and not on speculation.
Yussuf said also that investors, who exited the market during the 2008 financial meltdown, were finding their way back due to the sustained growth.
He said that there was the need for listing of new issues to avoid over pricing of stocks and avert the bubble burst experienced in 2008.
“The market regulators should encourage listing of new issues in the market to minimise pursuit of few stocks by investors with surplus funds,” Yussuf said.
Mr Olaleye Williams, the Managing Director, Global View Consult & Investment Ltd., said that the initiatives introduced by the market regulators to enhance investor confidence led to the growth witnessed during the period.
Williams said that the new trading platform offered opportunities for better appraisal of the potential of the market.
He expressed optimism that the current growth would be sustained in January as investors strategised ahead of the release of companies’ financial results for 2013.
NAN
