As investors continue to exercise caution in the new year, listed equities at the Nigerian Stock Exchange (NSE) have displayed 12 per cent growth in just 25 trading days.
The News Agency of Nigeria (NAN) reports that the impressive returns to investors saw the All-share index appreciating to more than 23,000 points on Feb. 5, compared with the closing 20,827 points at the end of 2009.
Meristem Stockbring Ltd analysis made available to NAN described the performance of the equities so far as astounding when benchmarked against the 34 per cent loss experienced in 2009 and 45 per cent loss recorded in 2008.
The firm in its weekly analysis said that the gradual rebound of the market when benchmarked against other global markets showed that Nigeria strides along Egypt to lead global equity performance in year to date evaluation while dwarfing emerging and frontier markets.
It said that while emerging market equities had yet to find their feet in 2010 having lost about 6 per cent from the huge recovery experienced in 2009, Nigerian equities had taken bold steps at outperforming Brazil by 26 per cent and South Africa by 20 per cent.
The firm also said that on the average, the liquidity position of the banking system has improved significantly and that the hitherto high rates for money market instruments were getting less and less attractive for fund managers and portfolio builders.
(NAN)
