Stock market immune to FG, SEC, Oando crisis

…Appreciates for 6th consecutive session

Trading activities on the floor of The Nigeria Stock Exchange have continued to soar higher over the last 6 trading sessions, resisting the scandal between the Securities and Exchange Commission (SEC), Oando and the Federal Government.

In fact, the market has recorded a rapid growth as the All-Share Index has climbed 1,795.12 basis points higher from Monday, November 27 when it closed at 37,280.18 points to 39,075.30 points achieved yesterday (Wednesday).

SEC had in a statement on Tuesday, reiterated its decision to conduct a forensic exercise into the activities of Oando Plc amidst the controversy over the suspension of the Director General of the Securities and Exchange Commission (SEC), Mr Mounir Gwarzo, as well as two other top directors by the Minister of Finance last week.

But, speaking with our correspondent, a Lagos based stockbroker, Segun Agbaje said on Wednesday that the market could be reacting positively to the forensic audit SEC has vowed to carry out on Oando.

Though he noted that the bonds, like the equities market, is also experiencing inflow, he attributed the recorded growth to portfolio rebalancing by early movers that are repositioning against next year (2018) seeing the improved GDP and appreciating foreign reserves in the country.

He, however, warned investors to be cautious pointing out the fact that the 2019 elections are around the corner and the growth witnessed now could be short-lived.

Lead market indices at the equities market closed Wednesday with a growth of 1.51 percent. The market capitalisation settled at N13.609 trillion, ASI closed at 39,075.30 points and Year to date returns swelled to 45.30 percent.

Leading 40 equity gainers on Wednesday were FBN Holdings, Transcorp and Diamond Bank with a growth of 10.12 per cent, 9.42per cent and 9.29 per cent to close at N8.49, N1.51, and N1.53 per share, respectively.

There were 13 losers for the day, topped by GlaxosmithKline, Studpress and LearnAfrica. They declined 5 per cent, 4.78 per cent and 4.76 per cent to close the day at n21.66, n1.99 and N1 per share, respectively.

By the end of the day’s transactions, investors had bought and sold a total of N703.7 million shares valued at N7.3 billion in 6,125 deals.

Adesola Afolabi