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Corporate, banking sector performances influence market recovery

Investors on the Nigerian Stock Exchange last week recorded a turnover of 2.133 billion shares worth N24.386 billion in 22,532 deals in contrast to a total of 1.675 billion shares valued at N21.315 billion that exchanged hands in 21,062 deals in the preceding week. This is remarkable improvement given previously recorded declining performance of the last few weeks. This recent achievement has been attributed to the unexpected performance of the Corporate and Banking sector.
Speaking with Daily Times Correspondent at the Stock Exchange House on Friday, A stock broker, Mr. Charles Fakrogha, explained that despite the economic and political challenges still affecting the Nigerian economic atmosphere, there are factors that can otherwise influence the performance of shares on the Nigerian Stock Exchange. ‘’There are so many factors that drives the market and a few of them like political and security situation as said would always remain, but like I have always mentioned, It is safe to say that the performance of the companies would drive the market, because the market is a reflection of what is happening to the companies.
So if these companies are doing well, and there is good news about them, investors are happy, this would automatically reflect in their share price. The corporate earnings, i.e. their reports is a major factor in influencing the performance of the market, of which a few of these reports have been seen in the last few days’’ he said. The commendable results from Nestle and Nigerian breweries which recently released their reports were not as unexpected as those of Zenith Bank and Guaranty Trust Bank that were released on March 5 which showed a revenue of N403, 343,000 and N278, 520,814 respectively for the year 2014, as well as a profit after tax of N99, 455,000 and N94, 694,919 respectively and proposed dividend of N1.75k and N1.50k each.
At the close of trading activities on Friday, the NSE All-Share Index and Market Capitalisation appreciated by 3.14 per cent to close at 31,049.37 and N10.360 trillion. Also, all indices finished higher during the week with exception of the NSE Insurance Index, NSE Oil/Gas Index and NSE Lotus II Index that closed lower by 0.12 per cent, 2.00per cent, and 1.75 per cent respectively. However, the NSE ASeM Index closed flat. The Financial Services Industry (measured by volume) led the activity chart with 1.797 billion shares valued at N14.192 billion traded in 14,424 deals; thus contributing 84.24 per cent and 58.20 per cent to the total equity turnover volume and value respectively.

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