BusinessDay... the voice of business: Stock market recovers N660bn in one week

Stock market recovers N660bn in one week
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MADUKA NWEKE & NGOZI UCHE on 14 May, 2008 02:00:00
 
The long period of  dwindling activities that left investors panicky has given
way as the market gains N660 billion in one week.
This follows the rise in market capitalisation from N11.453 trillion May 5, to
N12.112 trillion on May 13, 2008 as the All –share index grew from 59243.78 to
62463.66 points.
An analysis by Business Day shows that the indices have been on the rise in the
last couple of days.
Market capitalisation rose from N11.453 trillion May 5 to N11.613 trillion May
6; N11.9 trillion May 7; N12.061 trillion, N12.112 trillion and N12.119 trillion
May 14.
The All share index increased from 59243.78 to 62502.97 points. In January,
market capitalisation was N10.6 trillion while the all share index stood at
58,593.44.
In February, it was N11.57 trillion . In March, it was N12.06 trillion with all
share price index at 62,693.60 points. In April, the market was N11.62 trillion
capitalised with index at 60,122.77 points.
The turn around was triggered by the gains recorded by some blue chip
companies.
UBA opened at N55.00 per share on May 6 to close at N57.75 with a total volume
of transaction hitting 20,943,433 million shares worth N1.175 billion exchanged
in 602 deals.
Zenith Bank closed at N47.24 per share with total of 9,045,422 units of shares
valued at N420.4 million traded . On May 7, the stock gained N2.36 to close at
N49.60 with a total of 13,165,304 million shares valued at N650.6 million
transacted.
First Bank appreciated by N2.24 to close at N46.20 with a total of 19,025,714
million shares worth N850.7 million changing hands in 1,265 deals.
Dele Odusanya, managing director of Quantum Securities Limited described the
situation as a good development. "The market has started rebounding. It has
taken a new turn. Before, we had been having bearish situation but if you look
at the situation now it is becoming bullish and that will continue for quite
sometime", he said.
A number of factors have been adduced for this upward trend, including
impressive performance by companies. Analysts said investors are chasing growth
stocks , some of which are now scarce.
Companies like UBA, First Bank of Nigeria PLC and Zenith Bank recently released
their results which are good enough to attractive investor patronage.
The upward trend has also been attributed to the recent focus on
infrastructural improvement through massive construction of roads all over the
federation has accounted for their share price appreciation. This has led to
rise in the prices of construction and property related stocks.