Foreign Inflow: NSE All-Share Index crosses 39,000 mark


…As Shareholders task acting DG of SEC on market integrity***

The Nigerian Stock Exchange (NSE) All-Share Index on Wednesday crossed 39,000 mark just after the 38,000 mark on Tuesday.

The News Agency of Nigeria (NAN) reports that the index rose by 580.88 points or 1.51 per cent to close at 39,075.30 against 38,494.42 achieved on Tuesday.

Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., told NAN that the growth, in spite of the forthcoming Yuletide celebration, was due to renewed confidence of foreign investors in the market.

Kurfi said that foreign investors were seriously taking position in the nation’s stock market to meet up with their portfolio requirements.

He said that they were increasing their stake in stocks with strong fundamentals, noting that most equities on the exchange were trading below their fair value.

“Some stocks are grossly trading below their intrinsic value when compared with their Earnings Per Share (EPS)”, Kurfi said.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the development to increasing foreign inflow into the bond and stock markets.

Omordion said that yields on bond was still looking up, while many stocks remained attractive on the stronger numbers emanating from companies.

He said that positive economic data and the rising external reserve contributed to the growth.

Similarily, the market capitalisation inched N202 billion or 1.51 per cent to close at N13.608 trillion compared with N13.406 trillion achieved on Tuesday.

Further analysis of the price movement table indicated that Okomu Oil Palm led the gainers’ chart with a gain of N2 .78 to close at N70 per share.

Nigerian Breweries garnered N2.40 to close at N140.40 , while Flour Mills Nigeria added N1.60 to close at N34.70 per share.

Unilever gained N1.45 to close at N44.40, while National Salt rose by N1.38 to close at N17.12 per share.

On the other hand, GlaxosmithKline topped the losers’ chart, dropping by N4.14 to close at N21.66 per share.

Julius Berger trailed with a loss of N1 to close at N27, while PZ  dropped 89k to close at N22.01, and Red Star Express, 13k, to close at N4.91 per share.

The volume of shares traded closed higher, appreciating by 34.71 per cent as investors bought and sold 703.68 million shares valued at N7.29 billion transacted in 6,125 deals.

This was against the 522.35 million shares worth N7.52 billion exchanged in 5,150 deals on Tuesday.

Custodian and Allied Insurance was the most active with 131.82 million shares valued at N494.40 million.

UBA sold 92.46 million shares valued at N986.68 million, while FBN Holdings accounted for 86.45 million shares worth N732.07 million.

Zenith Bank traded 71.18 million shares valued at N1.84 billion, while Transcorp traded 46.53 million shares worth N69.85 million.

In the meantime, Shareholders on the Nigerian capital market on Wednesday urged the newly appointed Director-General of the Securities and Exchange Commission (SEC), Abdul Zubair to step up measures aimed at safeguarding market integrity.

The shareholders told the News Agency of Nigeria (NAN) in Lagos that safeguarding the integrity of the capital market space should be the director-general’s priority to boost investor confidence.

The immediate past Zonal Secretary, Independent Shareholders Association of Nigeria (ISAN), Bayo Adeleke, said that the commission’s boss should pursue policies aimed at strengthening investors’ confidence.

“SEC as a regulatory institution should continue its regulatory functions of safeguarding the integrity of the capital market space’’, Mr. Adeleke said.

He said that the director-general should continue its push for electronic dividend and ensure unbiased regulation of the market.

Mr. Adeleke urged Mr. Zubair to ensure quick completion of the Nigerian Stock Exchange (NSE) demutualisation programme to strength market growth and development.

Boniface Okezie, the President, Progressive Shareholders Association of Nigeria, said that all pending cases awaiting the commission’s attention should be treated without delay.

Mr. Okezie said that the director-general should ensure quick conclusion of some capital market fraud cases which had been pending with the commission in the past 10 months without any pronouncement.

The shareholder activist also said that there was the need for the director-general to remain focus in order to succeed in his new task.

NAN reports that the federal government on December 3, announced the appointment of Mr. Zubair as the acting SEC Director-General.

The commission’s Corporate Communications Unit, Efe Ebelo, said in a statement that the appointment was with immediate effect.

Mrs. Ebelo stated that the appointment followed the suspension of Mr. Mounir Gwarzo, the commission’s boss for alleged corruption.

She assured the investors and other stakeholders, both local and international, of the commission’s commitment to ensuring uninterrupted and orderly operation of the market and regulation.

Until his appointment, Mr. Zubair was the Director in charge of External Relations in the commission.

Mrs. Ebelo stated that the SEC would continue to ensure the stability of the Nigerian capital market as well as sustain the all-time high level of investors’ confidence.

She added that recent developments in the commission would not be allowed to disrupt its regulatory effectiveness and efficiency as statutory regulator of the capital market.

According to her, the market will run smoothly in spite of the development.

Mrs. Ebelo said the commission patiently awaited the outcome of the assignment of the Administrative Panel of Inquiry set up by the Minister of Finance to investigate the allegations against the former boss.

She said that at no point would the management allow the operational independence of the commission to be compromised.

“This is strictly in line with the objectives and principles of securities regulations as set out by the International Organisation of Securities Commissions (IOSCO), to which Nigeria is a signatory,’’ she said.