For investors in Nigerian equities, 2017 is a year to remember. Nigerian equities closed the year with average year-to-date return of 42.30 per cent, equivalent to net capital gain of N4.36 trillion.
At the close of trading for the year at the weekend, most equities were on the upside with all major indices showing widespread positive returns across the sectors.
Aggregate market value of all quoted equities on the Nigerian Stock Exchange closed the year at N13.609 trillion as against the year’s opening value of N9.247 trillion, representing net capital gain of N4.36 trillion. The All Share Index (ASI)-the value-based common index that tracks share prices at the NSE, closed the year at 38,243.19 points as against its year’s opening index of 26,874.62 points, representing average full-year return of 42.30 per cent.
Investors in the banking sector recorded the highest gains during the year as the NSE Banking Index posted average year-to-date return of 73.32 per cent. The NSE 30 Index, which tracks the 30 most capitalised companies, recorded above average return of 46.14 per cent. The NSE Consumer Goods Index closed the year a gain of 36.97 per cent. The NSE Industrial Goods Index rose by 23.84 per cent. The NSE Insurance Index posted a modest return of 10.36 per cent while the NSE Oil and Gas Index recorded a modest gain of 5.76 per cent. The NSE Lotus Islamic Index-which tracks ethical stocks in compliance with Islamic rulings, posted a gain of 39.03 per cent, underlining the attractiveness of ethical investment in the midst of the rally.
The performance in 2017 contrasted sharply with the downtrend in the previous years. The ASI had closed 2016 at 26,874.62 points as against its year’s opening index of 28,642.25 points, representing a full-year return of -6.17 per cent. Aggregate market value of all quoted equities also dropped from 2016’s opening value of N9.851 trillion to close the year at N9.247 trillion, indicating a net capital loss of N604 billion. Aggregate market value of all quoted equities on the NSE had closed 2015 at N9.851 trillion as against its opening value of N11.478 trillion for the year, representing a loss of N1.627 trillion.
Also, the ASI, which serves as sovereign equities index for Nigeria, had indicated a negative full-year average return of -17.36 per cent for 2015 closing at 28,642.25 points as against its opening index of 34,657.15 points. The losses in 2015 had worsened the downtrend that had in 2014 marked out Nigerian equities among the worst-performing stocks globally with average full-year decline of 16.14 per cent. Aggregate market value of all quoted equities had closed 2014 at N11.478 trillion as against its opening value of N13.226 trillion for the year, indicating a loss of N1.75 trillion during the year.
The 10 best-performing stocks for the year included Medview Airline, Dangote Sugar Refinery, Fidson Healthcare, International Breweries, Fidelity Bank, May & Baker Nigeria, Dangote Flour Mills, Stanbic IBTC, FBN Holdings and C & I Leasing.
On the negative side, the worst-performing stocks for the year included Morison Industries, Jaiz Bank, Forte Oil, University Press, MRS Oil and former Mobil Oil Nigeria, now known as 11 Plc.
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