Market Capitalisation Rises By N33 billion
TRANSACTIONS on the Nigerian stock market maintained upward bit, last week, and market capitalisation rose by N33 billion.
Stockbrokers, who spoke to The Guardian in Lagos, attributed the development to the way and manner the new Committee of the House of Representatives is currently handling the ongoing probe of the capital market.
The market had, at the close of business on Monday, April 16, recorded a depreciation in market capitalisation from Friday, April 13 position of N6.615 trillion to N6.608 trillion and All-Share Index went down from 20,743.16 to 20,722.40.
But from Tuesday, April 17, all the market indices started to rise, culminating in market capitalisation and All-Share Index peaking at N6.938 trillion and 21,756.50 respectively on Friday, April 20, 2012. This was an appreciation of N33 billion in market capitalisation and a rise of 1,034.1 basic points in All-Share Index.
Jonathan Uduehi, a stockbroker said that the mature manner the new Committee is handling the probe is re-assuring the investors that the market is receiving desire attention.
He declared: "We (the capital market operators) have always maintained that the government has significant role to play in the capital market and whatever move it (the government makes) has a way of impacting on the market. Look at what is happening now in the market, because the current probe committee is going on maturely, investors are beginning to demonstrate confidence in the market as reflected in the bullish trading during the week."
A stock market analyst, Austin Kaye, who corroborated Uduehi, deposed that the market thrives on government support and pronouncements.
According to him, because the current Probe Committee is poised to address the market problems, despondent investors, who were disillusioned about the market as result of the past negative happenings, are now returning to invest in equities.
He predicted that if the market sustains the prevailing bullish trend, more investors, who are carefully watching the market, would embrace the market. This would sooner or later give rise to a positive rally, which is what the market needs badly now to overcome the sustained sluggishness.
Meanwhile, quoted firms have continued to declared dividends to shareholders. Latest in this trend is Dangote Sugar Plc, which declared a dividend of N3.6 billion and Guaranty Trust Bank, which announced a N25.02 billion dividend for 2011 trading year.
The Guardian