market in the World
THURSDAY, 03 JANUARY 2013 00:00 GODFREY OBIOMA

Nigeria was the third most rewarding stock market  globally in 2012 behind Egypt and Kenya, as investors harvested 35.45 percent yield- to- date return on investment from the Nigerian Stock Exchange (NSE).

According to a study by Meristem Research, the bulk of the returns came from NSE 30 selected stocks with 44.61 percent YtD return, Food and Beverages, 42.27 percent and banking, 23.91 percent.

The companies that offered the returns, according to the study, included the Paints & Coatings Manufacturers Nigeria (PCMN), with 276.92 returns to close at N1.9 per share, Presco with YtD of 96.08 percent to finish at 17.00 , Airline Services Limited, with 92.63 returns and closing price of N4.18 per share, Zenith Bank 60.02 return and price of N19.49 and UTC, which rewarded investors with 50 percent at the price of N0.75 per share.

The Nigerian Stock Exchange All Share Index finished the year at 28,078.80 with market capitalisation of N8.974 trillion.

The Egyptian stock market was the most profitable, with YtD of 49.56 percent, Kenya, second with 39.32 percent return to investors. YtD from the Ghana Stock Exchange was 35.45 percent, while South Africa returned 23.81 percent to investors.

The US Dow Jones Average closed the year with YtD of 6.40 percent, NASDAG Composite Index 13.95 percent, UK FTSE All share index 8.61 percent, France FAC 40 index 14.80 percent and German Dax index, 29 percent.

YtD from China’s Hang Seng was 23.90 percent, India BSE 30 index 25.82 percent and Japan Nikkei 225, 22.94 percent.

The return profile shows that African markets  were most attractive by return standard,followed by markets in the Asia/ Pacific regions.

It shows that returns in matured markets of Europe and America are thinning out , a situation that leaves African and other emerging markets as viable alternative markets.

Analysts say if the trend continues in the New Year, increased migration of investors to emerging and frontier markets like Nigeria, other African countries and the Asia markets will be witnessed.

Victor Ogiemwonyi, CEO, Partnership Investment and Investment Company, said the capital market growth momentum would continue in 2013.

He attributed the growth recorded in 2012 partly to the regulators’ hard work. “They have put in place needed reforms that are now responsible for the gradual return of confidence to the market”, he said.

According to Ogiemwonyi, the outlook for 2013 is very positive. “I expect the market to do better than average in the New Year.

The factors that will influence things include the rising confidence and the liquidity that will follow, especially with the year starting with an approved budget.

The gradual return of investors will see the market rise in the first quarter and slowly correct any spike that may be too far from the average”, he predicted.


http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/49782-nigeria-emerges-3rd-most-profitable-stock-market-in-the-world

That's a bubble, to be honest...

Only a ret.ard will invest his/her hard earned wealth in stock in this gloomy financial climate...

Nice. One good news

Yet d House of Reps wants the head of d DG of SEC cos of Ego; and simply cos of their sillly fight with her, refused to approve a budget for SEC this year....

shymexx: That's a bubble, to be honest...

Only a ret.ard will invest his/her hard earned wealth in stock in this gloomy financial climate...

What is a nation's economy if not a sustained cycle of bubble and burst? I listened to Soludo's lecture the the NA invitation on the CBN act amendment and he succeeded in impacting a very important message- All arguments of under regulation and over regulation or conservative and liberal economic policies has always been aimed at reducing the effect of this cycle but history has shown that it has never succeeded. The most important thing is to take the right steps according to the prevailing economic school of thought to minimize the impact of the burst while retaining the sharp focus of wealth creation during the bubble period. US and Greek economy are case in points.

Praises should also go to the DG of the stock exchange, Mr Onyema. I've seen him talk on CNBC Africa and it seems he knows what he's doing

shymexx: That's a bubble, to be honest...

Only a ret.ard will invest his/her hard earned wealth in stock in this gloomy financial climate...

Right to some extent. But i tell you there are Stocks in the Nigeria stock market that i keep thanking God that i bought. I have made tens of millions from this stock market and lose some single digit millions to senseless stocks like DAAR investment, JAPAUL, Transcorp, Afribank, intercontinental and some bogus insurance companies.
Thanks to Dangote, GTB, First Bank and some others like Guinness, am in green balance. Nigeria stock market is sweet and bitter. Depends on how sophisticated your brain is.

shymexx: That's a bubble, to be honest...

Only a ret.ard will invest his/her hard earned wealth in stock in this gloomy financial climate...

stop the insult aga shymmex. I bouhgt 160 thousand unit of gtb 50thousand unit of zenith bank last june the price has almost double.

Thats some goodnews there,but please how does this actually translate to alleviating d plights of d common man?Just asking anyway.