Investors Staked N279.12b On 25.93b Shares In First Quarter Of 2015

Investors on the Nigerian Stock Exchange staked N279.12 billion on 25.93 billion shares traded in 261,116 deals in the first quarter of 2015, the News Agency of Nigeria reports. Statistics released by the NSE on Tuesday in Lagos showed that the market declined in volume and value as 27.9 billion shares worth N302.99 billion was achieved in 270,236 deals in the last quarter of 2014. The data also showed that the turnover of shares traded dropped by 7.06 per cent. A breakdown of the statistics showed that the financial services sector emerged the most active, accounting for 20.56 billion shares valued N144.88 billion traded in 157,151 deals. NAN reports that the market capitalisation during the review period dipped by N761 billion to close at N10.717 trillion, against N11.478 trillion achieved in the last quarter of 2014. Also, the NSE All-Share Index lost 2,912.31 points or 8.40 per cent to close the quarter at 31,744.84 points from 34,657.15 points recorded in the preceding quarter. Emeka Madubuike, the President of the Association of Stockbroking Houses of Nigeria, attributed the decline to pre-presidential and National Assembly elections’ uncertainties, which resulted in huge sales pressure. Madubuike said the Central Bank of Nigeria’s devaluation of the nation’s currency and tight monetary policies led to the development in the growth. He said political and security uncertainties and continuous drop in crude oil price at the international market, which led to the exit of portfolio investors, contributed to unimpressive market performance. Olaleye Williams, the Managing Director of GlobalView Consult and Investments Limited, said that foreign investors’ exit from the equities market to due foreign exchange pressure was the major reason for the market’s dismal performance. Williams said market operators and regulators should seek ways aimed at improving domestic investors’ participation to reduce overbearing effect of foreign investors. Ariyo Olushekun, the immediate past President of the Chartered Institute of Stockbrokers, said the market would witness impressive recovery in the second quarter. Olushekun said the market would experience sustainable growth due to the peaceful outcome of the elections without violence and emergence of Muhammadu Buhari as the President-elect. He said a lot of investors, both local and foreign, who exited the market for fear of post-election violence, would return to the market. “Foreign and local investors who left the market can now have another view of the market,” Olushekun said. He said the risk of instability witnessed in the past had been sorted out with the successful conduct of the presidential and National Assembly elections.