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| NSE DG, Oscar Onyema |
The positive sentiments at the stock market continued
yesterday lifting the market capitalisation above N12 trillion for the first
time after five years. Also the share price of a listed firm crossed N1, 000
for the first time in the market.
Having resumed for the week on a positive note last Monday,
the market recorded a negative
performance on Tuesday. However, on resumption of trading yesterday after
Wednesday’s holiday to mark democracy day, shares surged to new highs.
Consequently, the market capitalisation crossed the N12
trillion to hit N12.152 trillion. The last time that market indicator hovered
around N12 trillion, was May 2008. Similarly, the Nigerian Stock Exchange (NSE)
All-Share Index crossed 38,000 point to
close at 38,016.80.
The market had climbed on the back of the 2007 boom to peak
at N12.62 trillion in March 2008 before the global financial meltdown set in
and sent share prices tumbling to a record low.
But general reforms
in financial sector coupled with the particular efforts of regulators in the
market to restore investor confidence have engendered a recovery that began
last year.
That recovery continued into the year, causing the market
capitalisation to hit N12.152 trillion yesterday, indicating 96 per cent
recovery from the 2008 peak.
By the close of trading yesterday, the market has recorded a
growth of 35.39 per cent so far this year, which is above the 34.5 per cent
growth achieved in the whole of last year.
Apart from the market indicators hitting new levels, the
share price of Nestle Nigeria Plc crossed N1, 000 to close at N1, 088 per
share. Nestle shares have remained the highest priced in the market, following
high demand by domestic institutional and foreign investors.
The Chairman of the Nigerian Stock Exchange (NSE) Investors’
Protection Fund (IFP) and first President of the Chartered Institute of
Stockbrokers (CIS), Mr. Gamaliel Onosode, had last Monday declared that
confidence had returned to the stock market.
He urged the stockbrokers and regulators to ensure that no
one does anything deliberately or by default that will erode that confidence.
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