TRADING on the equities market
closed continued its positive trend
yesterday as NSE ASI appreciated
by +0.72% to close at 28,101.63
basis points, as against +1.05%
appreciations recorded previously.
Its Year-to-Date (YTD) returns
currently stands at +4.57%.
Market breadth closed positive
as Oando led 22 Gainers against
15 Losers topped by Mobil Oil at
the end of yesterday’s session- an
unimproved performance when
compared with previous outlook.
Market turnover closes negative
as volume moved down by 4.93%
against 34.74% downtick recorded in
the previous session. Zenith Bank,
FBNH and Transcorp were the most active to boost market turnover. Seplat
and NB topped market value list.
Seplat leads the list of active stocks
that recorded impressive volume
spike at the end of yesterday’s session.
The gradual rebounding of the
market after the recent pullback from
bullish run is evidence of connection
between the recovering economy and
the stock market. If this economic
recovery momentum is sustained to
support the companies and market
fundamentals to drive investor
confidence as positive factors and
news will continue to trigger demand
for stocks, especially as the prices of
equities remain low, compared to the
intrinsic values of the companies.
Also, the continued improvement in
crude oil output as a result of peace in
the Niger Delta to meet and surpass
the benchmark output will further
boost government’s revenue to fund the budget, even as the Royal Dutch
Shell, which operates in Nigeria
as Shell Petroleum Development
Company (SPDC) says it has
completed repairs of the damaged oil
pipeline which forced the company to
shut down the Nembe Creek Trunk
line in February. This is seen as an
indication that oil price will continue
to rise as the country is continues
to enjoy exemption from the OPEC
production cuts. This would be
greatly enhanced by extension of
production cuts by members of the
Organization of Petroleum Exporting
Countries (OPEC) to support price
of the commodity, from which they
graciously exempted Nigeria owing
to its long years of non-production
arising from the Niger Delta crisis.
Nigeria depends mainly on oil for
most of its dollar receipts and budget
funding.

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