NSE Index hits two-month high

The Nigerian Stock Exchange’s All-Share Index rose to its highest point in more than two months on Tuesday as the equity segment of the Exchange closed positive for the fifth straight session.
The NSE ASI gained 0.30 per cent or 116.62 basis points on Tuesday to close at 38,054.23, from 37,937.61 the previous day. Read more after the cut


The ASI hit 38,038.79 basis points on August 12, but had been unable to reach that height until now.
The Chief Executive Officer, Enterprise Stockbrokers Plc, Mr. Rotimi Fakayejo, attributed the recent gains in the capital market to the release of third quarter results and increased investments by foreign portfolio investors, among other things.
He said, “Basically, all the indices gained today and when you look at the gainers and losers, there is no substantial loser today and we saw more gains coming in for Nestle Foods Plc.
“The two factors responsible for the gains are:  One, the results that we have seen; many of them are encouraging and they are consolidating on what we saw in the first half of the year and we expect that they will keep that up.
“There had been expectations that the earnings may reduce, but to an extent, at least 80 to 85 per cent of the companies that have posted results have either maintained the status quo or performed better.”
Fakayejo explained that the second factor was that many investors were trying to make investment towards the end of the financial year, particularly foreign portfolio investors, some of who, he said, were likely to close their books at the end of the month.
According to him, the present trend and other factors are likely to push the All-Share Index to about 40,000.00 basis points at the end of the year.
Also, the market capitalisation of the listed equities rose by 0.30 per cent or N37bn from N12.121tn Monday’s close to N12.158tn.
All other indices also appreciated as companies continued to post third quarter results, which, according to experts, have been mostly positive.