With a month left, an estimate of 18 trading sessions left before the year 2017 comes to an end, the Nigerian Stock Exchange seems to be preparing for a good close for the year despite the bumps on the rise and fall of the trading indices and the nation’s capital market at large.
As of the close of trading activities last Thursday, the Year-To-Date (YTD) return was at 41.19 per cent as the All Share Index (ASI) went up with 11,069.98 basis points between January and November 2017, while capitalisation grew by N3.885 trillion.
The month of November maintained its swing northward as only seven trading sessions experienced a downturn, added with the fresh inject of shares from Global Spectrum Energy Services Plc, as well as new listings resulting from Guinness’ and Unilever’s recently successful rights issues.
Specifically, in November, the NSE ASI gained 2.81 per cent, though 0.69 points down from previous month close of 3.50 per cent while the year to date performance closed at 40.32 per cent as compared to 36.49 per cent in the month of October, just as The market capitalisation gained N359 billion in the month under review.
Considering the beehive of activities in the equity market space for the month, volume and value closed upbeat by 69.65 per cent and 84.75 per cent in higher deals relative to previous month’s levels.
As projected by market watchers, the equities market experienced a positive outlook in the month of November. This was, however, unconnected to third quarter result flooding the market with impressive result from different sectors most especially consumer goods sector, as well as the growth in Nigeria’s GDP from 0.71 per cent of second quarter to 1.4 per cent as released by the National Bureau of Statistics (NBS).
Receiving the listing of the Global Spectrum Energy Services Plc shares, the Chief Executive Officer of NSE, Oscar Onyema noted that the listing showed the confidence Global Spectrum has on NSE’s platform, which has a total market capitalization of N20.67tr1 ($67.5Bn) across all of our asset classes.
“As a listed company, we also believe that Global Spectrum intends to provide increased returns to its shareholders. Today’s Listing by Introduction of 800,000,000 ordinary shares of Global Spectrum Energy Services Plc at a Listing Price of five naira per share is a culmination of several months of hard work by all parties to the transaction including the Securities and Exchange Commission and The Exchange,” he said.
Oscar observed that the listing added four billionnaira to the market capitalisation of The Exchange, further deepening the Nigerian Capital Market, noting that It woulkd also increase the visibility of Global Spectrum; solidify its brand as a pre-eminent Oil & Gas Offshore Support Services company in Nigeria.
However, during the week the news of the suspension of Mounir Gwarzo, the Director-General of the apex regulator of the nation’s capital market, Security Exchange Commision (SEC), dampen the market space. As against prediction that the suspension of the DG on Wednesday would impact negatively on trading, the market recorded increase by the end of Thursday trades.
Following the suspension of the Director-General of the Security Exchange Commision, Mounir Gwarzo from office by the Minister of Finance, Kemi Adeosunto, to allow for an unhindered investigation of several allegations of financial impropriety leveled against the Director-General, shareholders have however opposed the decision.
Boniface Okezie, National Cordinator of Progressive Shareholders Association of Nigeria (PSAN), in a telephone conversation with the Nigerian Tribune said the action of the Minister was uncalled for and would send a wrong signal to the nation’s capital market community.
He stated that suspending the DG while investigation is ongoing without the council member’s knowledge was a bad move, noting that there are due processes to be followed before an action of such gravity could be carried out.
He explained that as trading on the Exchange feeds on information, the news of the suspension would definitely give a wrong signal to investors as the news of the suspension hits the investor, noting that at a time like this, when the market is gradually picking up, the news is considerably bad.
However, despite the dampning effect the news might bring, analyst believed that the market would further react positively in anticipation for the fourth quaretr result. APT Securities believed also that impressive economic indicator in third quarter suggest a promising trading sessions in the week ahead.