LAGOS – Some capital market operators on Monday attributed the rebound of the nation’s equities market to the robust 2014 audited results declared by some quoted companies.
They told the News Agency of Nigeria (NAN) in Lagos that the result released by GT Bank and Zenith Bank were beyond investors expectations in spite of Central Bank of Nigeria’s (CBN) tight monetary policy.
Mr Emeka Madubuike, President, Association of Stockbroking Houses of Nigeria (ASHON) said that the results declared last week renewed investors’ confidence in the market.
Madubuike said that the impressive results and dividends declared during the period enhanced investors interest in the equities market.
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He said that the market lost 14.70 per cent in January due uncertainties surrounding the general election, security challenges and developments in the global oil market.
Madubuike, however, said that the market growth would not be sustained with the various investment uncertainties that led to exit of foreign investors and the forthcoming general elections.
He said that the market would continue to experience mixed performance untill after the elections.
Mr Adebayo Adeleke, General Secretary, Independent Shareholders Association of Nigeria, (ISAN) said that the growth was in response to results declared by some highly capitalised companies.
Adeleke said that the market on the overall was offering good promises especially in view of the coming elections
He said that the results declared by GTBank and Zenith met shareholders expectations considering the harsh operating environment.
“The mood of the market swings. However, in view of expectation of 2014 results, the market may continue to rally over the next few weeks,” Adeleke said.
NAN reports that All-Share index appreciated by 945.56 points or 3.14 per cent to close at 31,049.37 points against 30,103.81 points posted in the preceding week.
Also, the market capitalisation which opened at N10.045 trillion rose by N315 billion or 3.14 per cent to close at N10.360 trillion.
Zenith Bank led the gainers’ table for the week appreciating by 18.98 per cent or N3.34 to close at N20.94 per share.
United Bank for Africa followed with a gain of 17.29 per cent or 60k to close at N4.07, while Union Bank increased by 16.87 per cent or N1.66 to close at N11.50 per share.
On the contrary, Airline Services and Logistics Plc topped the losers’ chart, dropping by 13.81 per cent or 29k to close at N1.81 per share.
UACN trailed with a loss of 12.01 per cent or N4.85 to close at N35.52, while Continental Reinsurance lost 10.87 per cent or 10k to close at 82k per share.
However, a turnover of 2.13 billion shares worth N24.39 billion were traded by investors in 22,532 deals last week.
This was against 1.68 billion shares valued N21.32 billion exchanged in 21,062 deals in the previous week.
The Financial Services sector led the activity chart with 1.79 billion shares Worth N14.19 billion transacted in 14,424 deals.
The Conglomerates industry followed with a turnover of 119.52 million shares worth N630.21 million accounted in 1,216 deals.
The third place was occupied by the Consumer Goods industry with 100.12 million shares valued N6.59 billion in 3,307 deals. (NAN)
