LAGOS, AUGUST. 1, 2016 – A financial expert, Mr Ambrose Omordion, on Monday blamed lack of palliatives to cushion the effects of the hikes in petrol price and electricity tariff for slow economic growth.Omordion, the Chief Operating Officer, Invest Data Ltd., Lagos said this in an interview with the News Agency of Nigeria in Lagos.
According to him, continuous delay in the release of the palliatives has not helped economic activities.
He said that this was also responsible for the rising inflation and unemployment rates.
Omordion said that the inflation rate might rise to 17 per cent “when numbers for the just-concluded month of July are released by the National Bureau of Statistics (NBS) later this month.’’
He, however, attributed the stock market growth last week to investors’ reaction to positive earnings by some quoted banks, in anticipation of interim dividends.
“The market last week reacted to the good quality half-year earning reports released by some firms.
“As investors and traders reposition their portfolios on the strength of numbers, they should expect another oscillating market.
“With more banking stocks notifying the NSE of late filing to audit their half-year results, it is a signal of interim dividends from such banks.
“Investors and analysts are also likely to shift attention from rate hikes to analyse the mixed numbers released so far, in relation to market prices, to know the likely direction of such companies’ shares,’’ Omordion stated.
Meanwhile, a turnover of 1.87 billion shares worth N16.33 billion were exchanged by investors in 21,584 deals last week.
This was against the 1.35 billion shares valued at N9.29 billion traded in 18,679 deals in the preceding week.
The Financial Services industry led the activity chart with a turnover of 1.59 billion shares worth N9.79 billion, traded in 13,810 deals.
The Conglomerates sector followed with 72.10 million shares valued at N141.68 million, transacted in 857 deals.
The third place was occupied by the Healthcare Industry with a turnover of
57.56 million shares worth N148.55 million, achieved in 400 deals.
The All-Share Index rose by 350.49 points or 1.27 per cent to close at 28,009.93, against the 27,659.44 posted in the corresponding week.
Also, the market capitalization, which opened at N9.500 trillion, gained N120 billion or 1.27 per cent to close at N9.620 trillion, due to price growths.
MRS Oil led the gainers’ table by 21.45 per cent or N6.85 to close at N38.78 per share.
Guaranty Trust Bank trailed with a gain of 14.36 per cent or N3.02 to close at N24.05 and Dangote Flour Mills appreciated by 12.86 per cent or 53k, to close at N4.65 per share.
Conversely, Skye Bank topped the losers’ chart by 17.65 or 15k, to close at 17k per share.
NEM Insurance came second with a loss of 12 per cent or 12k to close at 88k, while Red Star Express declined by 10.57 per cent or 50k, to close at N4.23 per share.
