The Nigerian Stock market has improved in the last one year as
performance indicators, market capitalization and All Share Index moved
up by about 76 per cent each.
This is coming barely one year after Alhaji Dangote Aliko, returned as President of Nigerian Stock Exchange (NSE).
An analysis of the market as at the end of trading Thursday last week showed that the market capitalization closed at N11.875 trillion while the All share Index ended 36,963.77.points, while market capitalization stood at N6.56 billion.
In the period between August 5, 2010 and June 18, when there was an interim president, Mallam Ballama Manu, there was a huge sell down due to high level of investors’ apathy. The NSE All-Share Index lost 18.2 per cent, falling from 25,715.39 to close at 21,028.37.
The height of uncertainty in the market was said to have led to the sell-down observed during this period. However, the trend changed after Dangote resumed. The first three months in office saw the Index rising by 21.6 per cent.
Global comparison
On global scale, Nigerian market topped other global indices in the green zone during the Dangote’s regime; leading the continent with 89 per cent followed by Kenya with 56.20 per cent of one year return.
Furthermore, African continent rode on the back of these performance to close with one year average return of 30.12 per cent gain. Among other continents, Asia recorded lowest one year average returns of 4.55 per cent while the advanced countries (G7) recorded one year average gain of 19.10 per cent to close second.
Shareholders’ remarks
In his own assessment, the President of Association for the Advancement of Rights of Nigerian Shareholders, Dr. Faruk Umar, said “Dangote’s ability to support the election of a first vice president, who may likely succeed him, indicates the kind of solid foundation Dangote is laying. The fact that he is the richest person in Africa and the 25th richest in the world gives international investors the confidence to invest in the Nigerian capital market.”
Similarly, the President, Proactive Shareholders Association of Nigeria, Mr. Oderinde Taiwo said the performance is worth celebrating because while the market capitalisation rose by 77 per cent, there are some other stocks that have recorded higher growth within one year that Dangote assumed office.
He added that “the growth recorded so far came from positive initiatives supported by the Council led by Dangote. These include the reconstitution of the Council members. A market segmentation exercise from 33 to 32 sectors was completed to rebrand and reposition Nigerian stock market among its counterparts. A series of new products were introduced. Among them are the SIM Capital Alliance Value Fund, the ABSA NewGold ETF and the NSE-Lotus Islamic Index.
This is coming barely one year after Alhaji Dangote Aliko, returned as President of Nigerian Stock Exchange (NSE).
An analysis of the market as at the end of trading Thursday last week showed that the market capitalization closed at N11.875 trillion while the All share Index ended 36,963.77.points, while market capitalization stood at N6.56 billion.
In the period between August 5, 2010 and June 18, when there was an interim president, Mallam Ballama Manu, there was a huge sell down due to high level of investors’ apathy. The NSE All-Share Index lost 18.2 per cent, falling from 25,715.39 to close at 21,028.37.
The height of uncertainty in the market was said to have led to the sell-down observed during this period. However, the trend changed after Dangote resumed. The first three months in office saw the Index rising by 21.6 per cent.
Global comparison
On global scale, Nigerian market topped other global indices in the green zone during the Dangote’s regime; leading the continent with 89 per cent followed by Kenya with 56.20 per cent of one year return.
Furthermore, African continent rode on the back of these performance to close with one year average return of 30.12 per cent gain. Among other continents, Asia recorded lowest one year average returns of 4.55 per cent while the advanced countries (G7) recorded one year average gain of 19.10 per cent to close second.
Shareholders’ remarks
In his own assessment, the President of Association for the Advancement of Rights of Nigerian Shareholders, Dr. Faruk Umar, said “Dangote’s ability to support the election of a first vice president, who may likely succeed him, indicates the kind of solid foundation Dangote is laying. The fact that he is the richest person in Africa and the 25th richest in the world gives international investors the confidence to invest in the Nigerian capital market.”
Similarly, the President, Proactive Shareholders Association of Nigeria, Mr. Oderinde Taiwo said the performance is worth celebrating because while the market capitalisation rose by 77 per cent, there are some other stocks that have recorded higher growth within one year that Dangote assumed office.
He added that “the growth recorded so far came from positive initiatives supported by the Council led by Dangote. These include the reconstitution of the Council members. A market segmentation exercise from 33 to 32 sectors was completed to rebrand and reposition Nigerian stock market among its counterparts. A series of new products were introduced. Among them are the SIM Capital Alliance Value Fund, the ABSA NewGold ETF and the NSE-Lotus Islamic Index.
No comments:
Post a Comment