While the benchmark Nigerian Stock Exchange (NSE) All-Share Index posted a year-to-date growth of 24.4 per cent at last Monday, Okomu Oil and Wema Bank soared by 135 per cent and 132 per cent respectively to lead the market recovery.
Apart from the two stocks, five other stocks have also recorded growth of between 80 and 99 per cent. Livestock Feeds Plc has appreciated by 98.6 per cent while Evans Medical Plc and WAPIC Insurance Plc rose by 89.6 per cent and 88 per cent in that order.
Forte Oil Plc and Chemicals and Allied Products Plc grew by 84 per cent apiece. Market operators said the growth in the share prices of these stocks reflected the returning investor confidence in the market.
All performance indicators in the Nigerian capital market have bounced back from the critical low they dipped to after the 2008 meltdown with the market capitalisation of the Nigerian Stock Exchange (NSE) increasing by over 60 per cent in the past year alone.
Despite certain prevalent, national and market-specific challenges which persisted all through the year, the Nigerian capital market was one of the top four performing capital markets globally in 2012 with the bourse’s major index closing the year with its strongest performance since 2008.
With the second quarter of 2013 underway, the market has shown clear signs of stability as the market capitalisation remaining above the N10 trillion mark from late January 2013 till date.
Domestic investors have increased their patronage of the market which led to their accounting for about 60 per cent of transaction value at the end of first quarter 2013, while foreign investors accounted for about 40 per cent.
This development contrasts sharply the circumstances between 2009 and the first half of 2012 when local investors stayed away from the market on account of losses they sustained in the aftermath of the near meltdown of 2008.
The Chief Executive Officer of the NSE, Mr. Oscar Onyema, said while the NSE has focused on cleansing, restructuring and making the market more accessible over the last years, its focus in 2013 would be on innovations centred on technology and product development, as well as on advocating changes to policy and continued financial literacy programmes alongside investor education.