Exchange Opening Raises Investors’ Hope

As the performances of
market indicators on the floor of Nigerian Stock Exchange (NSE) last week, did not encourage investors, the week opening seemed to correct the trend as market closed positively to raise their hope.
All share Index and market capitalisation appreciated to close last Monday transactions on a positive note.
All share index gained 794.81 points to close higher at 41,366.42points as against 40,571.61 points.
Market capitalization closed higher at N13.260 trillion compared to N13.005 trillion that close last week’s transactions.
Investors traded a total of 396.956 million shares worth N5.484 billion.
The gainers chat was led by FO after gaining N9.20 per share to close at N99.4 per share. Dangcem followed with N8.81 gain per share, to close at N243.3 per share.
However, the Total lost N9.00 per share to close at N171 per share, followed by WAPCO which lost N7.00 per share to close at N171 per share.
Meanwhile, stock brokers have said the N9.32 share price of Oando Plc offers a buy opportunity for investors considering the growth potential in the company.
Shares of Oando have dipped by 21 per cent in the last three days since news broke that jailed former Governor of Delta State, James Ibori, hid his assets in the integrated energy  firm.
Ibori has allegedly told a Swiss bank in 2004 that he owned about 30 per cent of the company.
However, Oando debunked the claims, saying Ibori only owned an insignificant  proportion of the firm. “Based on our current shareholding register, Ibori’s shareholding stands at 443 shares out of a   total issued and paid up share capital of 6.8 billion ordinary shares, which is clearly insignificant and cannot be considered as a large part of Oando”, the company had said.
The shares of the company have been affected by investor apathy which has depressed its price from N11.77 to N9.32 between Monday and Wednesday.
However, some market operators said instead of dumping Oando shares, investors show see the current prices as an unprecedented entry opportunity. Oando had opened the year at N12.35 per share, peaked at N19.80 in March and was hovering between N13 and N15 before the latest negative trend.
Obelema Briggs