Low prices of equities in the financial services sector and improved third quarter results by some banks fuelled a robust performance of the Nigerian Stock Exchange (NSE) in October.
Data obtained by the News Agency of Nigeria (NAN) from the exchange in Lagos specified that banking equities liberated the gainers’ table with Fidelity Bank becoming the best performing stock in terms of percentage.
Precisely, Fidelity Bank during the period rose by 20 per cent to close at N2.04 per share against the opening price of N1.70.
Diamond Bank trailed with a growth of 19.49 per cent to close at N1.41, while Newrest ASL improved by 17.86 per cent to close at N6.60 per share.
Consequently, the All-Share Index during the period shed 300.10 points or 0.92 percent to close at 32,466.27 equated with 32,766.37 achieved in September.
Similarly, the market capitalisation which opened at N11.962 trillion lost N110 billion or 0.92 per cent to close at N11.852 trillion.
Head of Banking and Finance Department, Nasarawa State University Keffi, Prof. Uche Uwaleke, said the performance of the market in October remained weak despite the positive financial results released by some listed companies.
Uwaleke ascribed the drift to the exit of foreign investors caused by the higher yield environment in developed countries especially the United States.
He said the performance of the capital market would not be any different, noting that domestic investors were not protected from the political risk.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. , ascribed the growth to mixed opinions.
Omordion said careful trading among investors as the 2019 general elections drew closer in the midst of declining economic activities and weak economic data contributed to the negative drift in the market. (NAN)