BusinessDay... the voice of business: First quarter turnover  up as awareness grows

First quarter turnover  up as awareness grows
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MADUKA NWEKE on 14 May, 2008 02:00:00
 
The capital market has started reaping from  the series of efforts by the
Nigerian Stock Exchange (NSE) to increase awareness of the market.
The results of the performance for the year 2008 placed side by side with the
equivalent period in 2007 show that the turnover recorded 68.55 billion shares
that value N990.41 billion in 2008 above the 26.2 billion shares that worth
N335.62 billion in 2007. This represents an increase of 161.65 percent over the
2007 figure.
According to market operators, a combination of price appreciation and new
listing led to the increase of market capitalization to N12.12 trillion in March
2008 from N10.18 trillion as at December, 2007. The All-Share index of the NSE
grew tremendously during the period by 8.67 percent in the first quarter of
2008. Some of the equities recorded over 900 percent in price appreciation. For
example, Premier Paints , a company in the Chemical and Paints sub-sector soared
by 914.88 percent from a price of N1.21 at the beginning of quarter to N12.28
per share. The stock like some other stocks in 2007 were inactive for many years
but have recently rebounded due to market awareness and positive sentiments.
Alumaco plcappreciated by 768.97 percent from N3.90 to close at N33.89 per
share while Morison Industries plc in the Healthcare sub-sector closed the year
with a growth of 759.04 percent, having appreciated from N2.71 per share to
N23.28.
Juli plc, a company in the emerging market segment returned 714.55 percent as
Arbico plc in the Construction sub-sector recorded return of 523.26 percent.
Nigerian Enamelware plc also returned 457 percent with Greif Nigeria recording
an increase of 456.16 percent during the period under survey.
Other stocks in this category included, John Holt plc, 339.42 percent and
International Breweries plc which appreciated and returned 296.89 percent moving
from N2.57 to N10.20 per share . Similarly, Scoa Nigeria appreciated 288.77
closing the quarter at N18 from N4.63 per share at the beginning of the quarter.
Sectoral analysis of the market during the quarter shows that the Construction
Sub-sector led on the table of with an average return of 216.68 percent. The
sub-sector was merely benefiting from the increased government patronage and
boom in the housing sector.