Lagos - The net worth of shareholders on the Nigerian Stock Exchange (NSE) rose by 9.73 per cent in September, up from 1.77 per cent in August.
Statistics from the NSE for the period under review showed that the All-Share Index closed higher at 26,011.64 from the 23,704.34 achieved in August.
The market capitalisation also appreciated by N737 billion to close at N8.282 trillion against N135 billion growth in August to close at N7.545 trillion.
The index measures the growth of the bourse, while the capitalisation captures the daily worth of all the securities.
Investors exchanged 10.1 billion shares worth N68.5 billion in 94,569 deals in September.
This was against 6.1 billion shares valued at N48.8 billion exchanged in 88,094 deals in August.
Some stakeholders attributed the market gains in September to the commencement of market making, introduction of securities lending, short selling and improved fundamental of quoted companies.
Rasheed Yussuf, a former President of Association of Stock broking Houses of Nigeria, said that the market growth was as a result of positive financial returns of some companies.
He also said that this was an indication of the return of investor confidence in the market.
Yussuf said that the presence of market markers had provided more liquidity to the market.
The former president said that it was also the consensus that the confidence level across frontier markets contributed to the growth in September.
He said that the growth was also as a result of increased activities of foreign investors and impressive quarterly results released during the period under review.
Yussuf called on the Federal Government, particularly the market regulators, to embark on sensitisation programme to restore the confidence of local investors.
Malam Garba Kurfi, Managing Director of APT Securities and Funds Ltd., said that the increase in new funds and market sentiments favoured the market.
Kurfi said that the trend would likely continue with the expectation of impressive third quarter results by some companies.
He said that local investors should be encouraged to come back to the market, stressing that the dominance of foreign investors was not good.
Kurfi said that many investors, who lost billions of naira during the market crash, still shunned the market.
Mr Eugene Ezenwa, the Managing Director of Pac Securities Ltd., urged the Federal Government to address the issue brokers’ debts promptly.
He said that quick resolution of the problem would encourage the stockbrokers to be active again in the market and also improve liquidity.