The Nigerian stock market, at the end of the first half (H1) of year 2017, experienced relatively impressive Return on Investment (RoI) as investors recorded gains.
Trading activities on the floor of the Nigerian Stock Exchange (NSE) between the first day of trading in the year 2017, January 3, and the end of the first half of the year, June 30, have yielded profit to a tune of N2.205 trillion.
The All-Share Index (ASI) improved with additional 6,242.86 points, representing 23.23 per cent growth to close at 33.117.48 absolute points as at the close of the second quarter on Friday.
With the recorded profit, market capitalisation has equally soared by 23.85 per cent within the trading period of six month to h stand at N11.452 trillion.
Market players, while being optimistic, have described the market performance as impressive, given that the year commenced on the negative record of 2016, when the ASI and market capitalisation closed on the red territory by -7.53 per cent and -6.13 per cent respectively.
It will be recalled that the market initially ran bearish at the beginning of the year before the bulls eventually dominated activities on the nation’s bourse toward the beginning of Q2.
While activities in Q1 ended negative by -6.56 per cent, investors’ confidence returned gradually in Q2 to close the quarter higher by 29.79 per cent which brought the Yea-to-Date (YtD) return on the equities index to 23.23 per cent.
Just as the ASI, all other indices for the sub-sectors of the market also posted improved performance in the H1 with exception of NSE ASeM which depreciated by -1.27 per cent.
Analysts have ascribed the growth recorded within the period to factors such as the recent initiatives taken by the Central Bank of Nigeria (CBN) to solve the problem of chronic scarcity of foreign exchange (forex).
According to the Managing Director and the Chief Executive Officer of Cowry Asset Management Limited, Johnson Chukwu, the recent gains recorded in the Nigerian stocks market would be sustained provided the country maintained the parameters as the stock market is the barometer to measure the economy of the country. He however believed there would be intermissionary falls in the value of some stocks within the coming weeks but largely the market would sustain its bullish ride.
Meanwhile, market analysts have expressed optimism that with the ongoing efforts by the CBN to relief forex scarcity in the country, coupled with various initiatives, such as improving ease of doing business, by the Federal Government (FG), foreign investors would return and the market will have better story to tell in Q3 and Q4.
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