Nigeria: NSE Market Capitalisation Hits N20 Trillion On Sustained Rally allafrica.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from allafrica.com Daily Mail and Mail on Sunday newspapers.
By Goddy Egene
The market capitalisation of the Nigerian Stock Nigerian (NSE), which is the total value of all listed equities, hit a historic peak of N20.281 trillion yesterday, as investors increased demand for stocks to reposition for year-end seasonal trends and the much expected economic recovery in 2021.
This is the highest the market would record since 2008 when it peaked at N12.3 trillion before the meltdown. That meltdown brought the market value to about N6 trillion before it started recovery in later years.
However, the listing of Dangote Cement Plc in 2010 significantly lifted the market. The listing of MTN Nigeria Plc, Airtel Africa Plc last year and BUA Cement Plc early this year added more boost to capitalisation of the exchange, which set the pace for yesterday’s historic peak.
With about six trading days left in 2020, the stock market has recovered from the decline suffered in 2018 and 2019 and is set to close with a growth of about 40 per cent, writes Goddy Egene
When trading at the stock market resumed in 2020, there was high optimism that the market would witness a recovery from the losses recorded in 2018 and 2019. The optimism was based on past experience in the market, where a rebound is always witnessed after two years’ decline.
For instance, after declining in 2015 and 2016, the nation’s bourse recovered with a jump of over 40 per cent in 2017. So when the market dipped in 2018 and 2019, market stakeholders were optimistic that 2020 will see the return of the bulls to the stock market.
Goddy Egene
The Nigerian stock posted another record performance last week as market indicators hit new highs while investors gained N1.334 trillion in five days.
The continued flow of funds into the stock market on the back of investors’ continued search for attractive returns pushed the market capitalisation from N17.092 trillion to N19.236 trillion, while the Nigerian Stock Exchange (NSE) All-Share Index (ASI), rose from 34,250.74 to 36,804.75 or 7.46 per cent, which are new highs.
The stock market has gained N6.321 trillion year-to-date, appreciating from N12.915 trillion to N19.236 trillion.
In the face of negative returns in the money market and fixed income securities, the equities market has remained investors’ preference for some months now.
Let’s learn to live in peace and harmony - Very Rev Father Nimorious Domanzing
Very Reverend Father Nimorious Kwabena Domanzing, Priest-in-charge of Saint Francis of Assisi Catholic Church, Ashaley Botwe, has called on Ghanaians to protect the peace they have enjoyed over the years.
He said every citizen had the responsibility to contribute towards building a peaceful nation because peace was the foundation for development.
“Let us learn to live together in peace and harmony. After all, we have nowhere else to go. Ghana is our home,” he said.
Rev. Fr. Domanzing made the call during a festival of Nine Lessons and Carols held by the Ghana Broadcasting Corporation (GBC) in collaboration with the St Francis of Assisi Catholic Church at Ashaley Botwe.