Returns on investments in the equities sector of the Nigerian Stock Exchange (NSE) in terms of capital appreciation was more pronounced in the construction sub-sector with an average returns of 216.68 per cent in the first quarter of 2008.

The sub-sector was trailed by the industrial/domestic products sub-sector with a return of 209.20 per cent, while the footwear sub-sector returned 198.36 per cent and the chemical and paints sub-sector returned 183.84 per cent.

The commercial/services sub-sector which returned 145.85 per cent followed, while healthcare sub-sector returned 135.70 per cent, and the conglomerates sub-sector returned 120.48 per cent, while the road transportation and agriculture sub-sectors had an average return of 112.93 per cent and 110.67 per cent each in the review period.

According to the first quarter economic review and outlook of Sterling Capital Markets Limited, a subsidiary of Sterling Bank Plc, the returns on investment in the construction sub-sector was due mainly to increased government patronage and boom in the housing sector. Further view of the market in terms of returns, according to the report indicated that the banking and insurance sub-sectors, which have maintained leadership position in terms of volume and value of trades, could not feature among the top ten in terms of returns, due to losses recorded in the share prices of most banks and insurance companies during the period.

The banking sub-sector made a negative returns of 1.21 per cent, while the insurance and the petroleum marketing sub-sectors returned 40.92 per cent and 64.87 per cent respectively. The report specifically stated that the banking sub-sector's negative returns may have been caused by excess supply given the spate of fresh listing in the last two years.

Meanwhile, riding on the performance of the 2007 financial year, the stock market opened on a bullish note in the first quarter of 2008, as investors' optimism buoyed by growing awareness and global applause of the Nigerian market as one of the best in terms of returns among emerging markets, boosted both the volume of transactions and the indices of corporate performance.

Delay in the release of the Federal Government budget, however, affected government spending towards the end of the quarter under review and invariably, impacted on the stock market indices negatively.