Goddy Egene
The Nigerian stock market appreciated by
3.8 per cent in the month of February compared with a decline in
January. The Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose
from 30,557.20 to close at 31,721.76 while market capitalisation gained
N434 billion, rising from N11.395 trillion to N11.829 trillion at the
end of the month.
The market had recorded a decline in
January as general elections jitters kept most investors away. However,
investors increased their patronage in February as they anticipated the
release of corporate results for the year ended December 2018. Also,
some investors felt the political uncertainties were reducing. Hence,
the market appreciated in the month of February.
The growth would have been higher but
for the decline recorded in the last two days of the month after the
result of the presidential elections were announced and President
Muhammadu Buhari declare the winner.
The NSE ASI had appreciated to a high of
32,700.12, while market capitalisation rose to N12.194 trillion on
Monday. However, the NSE ASI closed the month at 31,721.76, while market
capitalisation ended at N11.829 trillion.
The market recorded the highest decline
of 1.63 per cent yesterday, which was the last day of the month. Losses
by GTBank Plc, Nestle Nigeria Plc and Zenith Bank Plc were partly
responsible for the decline.
However, market operators are optimistic that the market would perform better in the second half of 2019..
For instance, the Group Chief Executive
Officer of Emerging Africa Capital Group, Mrs. Toyin Sanni told THISDAY
that the general expectation is that the first half 2019 will be more of
the same as last year because investors will be playing a wait and see
approach due to the elections.
“Investors will wait to see how the
elections are accepted and confirm that there will be peace in the
post-election period up till May 29, which will be the day the new
government will be sworn into office,” she said.
According to her, investors generally
just want stability and peace, stressing that the parameters remain
positive for Nigeria from a long-term perspective.
“Nigeria remains an attractive because
of its size, demographics because of the continued activities of SMEs
which are the drivers of this economy, because of how we have embraced
the digital economy as a people and a nation because we are still a
resources rich country. But investors would want to see that there is a
stable government, there is peace and government is accepted by the
people, investors will want to see they can expect the right economic
policy and the policies will be implemented in a consistent manner,” she
said
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