…Records N4.24trn gain in 2017

The market capitalization of the Nigerian Stock Exchange (NSE) closed on a positive note for 2017 as it spiralled to N13.483 trillion on December 27, from N9.247 trillion with which it opened trading in January, netting N4.24trillion for the year .
Its twin-indicator, the Nigerian Stock Exchange All Share Index (NSEASI), which measures the performance of the equities, appreciated by 11,014.95 points to 37,889.57 from the 26,874.62 basis points with which it opened the year.
This followed renewed demand for stocks by foreign investors and domestic investors on improved macroeconomic developments and foreign exchange.
The stock market returned fully back to a positive position in April in the year under review, even as analysts attributed the factors responsible for the appreciation to the improvement in the first quarter of 2017 results of quoted companies, compared with the corresponding period of 2016.
Other factors, according to them, include the increase in the supply of foreign exchange, improved crude oil production and price, improved investors’ confidence in the Nigerian economy as well as the financial market; increase in the participation of both the local and foreign investors in the markets and the boost to the economy by the passage of the Petroleum Industry Governance Bill (PIGB).
The 2017 close in positive territory is not surprising as market stakeholders predicted the recovery. Specifically, while reviewing the performance of the stock market in 2016, the Chief Executive Officer of NSE, Mr. Oscar Onyema expressed optimism that the stock market will recover in 2017.
He said the capital market is a subsector of the Nigerian economy and the World Bank has projected that  the economy will recover from its recession in 2017 with a modest growth of 0.6 per cent.
Onyema, therefore said  based on the  positive forecast and  the initiatives being  in place by the NSE, investors should be optimistic about recovery of the market  in 2017.
He said the Nigerian capital market will do a better job at promoting its unique value proposition to both global and domestic investors. “We expect investors to continue to keep a close eye on the divergence between the interbank FX rate and other exchange rates in the country.
Accordingly, a convergence of FX rates in the country and the performance of listed corporates will determine the level of market activity in the short term,” he said.