Business
Stock Market Records Mixed Performance
The Nigerian Stock Exchange (NSE) recorded mixed performance in the first half of 2012.
The mixed performance of the Nigerian bourse in the six months was due to unfulfilled dreams of investors about market rebound and on promises of intervention by the Federal Government.
But in spite of the low morale of stakeholders, some investors took positions in the market by purchasing 46.05 billion shares worth N315.76 billion in 448,437 deals.
This was against the 50.66 billion shares valued at N369.71 billion exchanged in 735,515 deals in the corresponding period in 2011.
Our correspondent reports that the overall market performance in terms of volume, value and number of deals, however, dipped by 9.09 per cent, 14.6 per cent and 39.03 per cent, respectively.
Even with the poor performance of the Exchange in terms of volume of traded shares value and deals, the NSE market indicators closed on positive note.
Specifically, the All-Share Index appreciated by 868.94 points or 4.2 per cent to close at 21,599.57 from the year’s opening index of 20,730.63.
The market capitalisation also rose by N363 billion or 5.6 per cent to close at N6.895 trillion in the period, compared with N6.532 trillion at the opening of the year.
The index appreciated by 209.68 points or 0.85 per cent in the first half of 2011, while the market capitalisation grew by N74 billion or 0.94 per cent.
Market analysts attributed the growth of the market indices to positive results posted by some quoted companies.
They, however, said that the current fall in the price of crude oil could depress prices of equities in the second half of the year.
Chairman, Association of Stockbroking House Owners of Nigeria (ASHON), Mr Emeka Madubuike, said that the dwindling oil prices would put pressure on the equities market in the months ahead.
Madubuike said that the Euro zone crisis, the lingering security challenges and uncertainties in Nigerian economy could further depress the stock market.
He said that the poor liquidity and low investor confidence were other impediments affecting portfolio investment in the country.
Mr Okechukwu Unegbu, the Chief Executive Officer of Maxifund and Securities Ltd., said that the market performance in the second half of the year would depend on the outcome of the capital market probe.