Capital Market Operators Flay Delay in passage of 2018 Budget
Operators in the Nigerian Stock Exchange (NSE) have chorused that delay in the passage of the 2018 budget would negatively affect the capital market.
Some of them expressed optimism that the 2017 earnings anticipated by investors this week would boost activities on the Exchange.
They told the news hunters in Lagos that the market would close upbeat as more companies would declare positive results.
Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd, Lagos said there was the need for the National Assembly to pass the budget.
He added that the anticipated results to be released this week at the NSE would attract more foreign investors to the exchange.
Kurfi said that the nation’s positive economy indices and more foreign and institutional investors would boost the exchange liquidity and investors’ confidence.
He said “The delay in the passage and implementation of the 2018 Appropriation Bill is not good for the capital market and the economy in general.
Kurfi called on the National Assembly and the Executive to settle the budget impasse in the interest of the economy.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. said that traders and investors would take positions in dividend-paying stocks.
Omordion said that the market volatility and repositioning would continue, adding that profit-taking would reduce on the strength of expected payouts and earnings by blue chips.
He urged investors not to panic but sought for equities with intrinsic value and higher dividend anticipation.
It would be recalled that a total turnover of 2.17 billion shares worth N39.09 billion were traded by investors in 24,657 deals last week.
This is against the 2.02 billion valued at N21.74 billion transacted in 25,496 deals the preceding week.
The Financial Services Industry was the most active when measured in volume terms with a turnover of 1.53 billion shares valued at N17.67 billion traded in 15,208 deals.
The sector contributed 70.69 per cent and 45.21 per cent to the total equity turnover volume and value respectively.
The Industrial Goods Industry followed with 200.41 million shares worth N6.44 billion in 1,097 deals.
The third place was occupied by conglomerate industry with a turnover of 188.09 million shares worth N48.45 million in 998 deals.
The NSE All-Share Index during the period rose by 305.34 points or 0.72 per cent to close at 42,876.23 against the 42,570.89 in the preceding week.
Similarly, the market capitalization, which opened at N15 .277 trillion, rose by N126 billion or 0.82 per cent to close at N15.403 trillion.
The market capitalization, which opened at N15.277 trillion, gained N126 billion or 0.82 per cent to close at N15.403 trillion.
Japaul and Maritime Services led the gainers’ table for the week in percentage terms by 50 per cent or 21k to close at 65k per share.
It was followed by Unity Bank which gained 18.79 per cent or 28k to close at N1.77 per share.
NEM Insurance appreciated by 18.42 per cent or 35k to close at N2.25 per share.
On the other hand, Sovereign Trust Insurance topped the losers’ chart in percentage terms by 20.83 per cent or 10k to close at 38k per share.
Unic Diversified Holdings trailed with a loss of 18.52 per cent or 5k to close at 22k, while Mutiverse was down by 17.65 per cent or 6k to close at 28k per share