Nigeria’ Equities record N137bn loss in 5 trading days

Nigeria’ Equities record N137bn loss in 5 trading days

…As bears strengthen hold Nigeria’s equities continued on a bearish run for the fifth consecutive trading session as N137 billion was brushed off from the market capitalisation of the Nigerian Stock Exchange (NSE). Indices on the nation’s bourse had resumed Monday’s session in the red with the All-Share Index (ASI) dropping 0.05 per cent and the

…As bears strengthen hold

Nigeria’s equities continued on a bearish run for the fifth consecutive trading session as N137 billion was brushed off from the market capitalisation of the Nigerian Stock Exchange (NSE).

Indices on the nation’s bourse had resumed Monday’s session in the red with the All-Share Index (ASI) dropping 0.05 per cent and the market capitalisation closing at N10.973 trillion.

Tuesday’s session saw the ASI declining by 0.35 per cent to settle at 29,096.41 points while market capitalisation fell by N38 billion to close at N10.935 trillion from an opening session of N10.979 trillion as at 8:00a.m on Monday.

The bearish performance stretched to the third consecutive trading session as the index shed 0.45 per cent to settle at 28,966.41 points while YTD loss further weakened to -7.8 per cent.

Accordingly, market capitalisation fell to N10.886 trillion as investors lost N50 billion. 

Dragged by sell-offs in Zenith Bank, FBN Holdings and Transcorp, the benchmark index declined by 0.24 per cent while the market capitalisation reduced to N10.860 trillion as investors lost N26 billion while YTD dipped to -8.1 per cent on Thursday.

Friday’s session was not any different as the benchmark index fell by 0.17 per cent to close at 28,847.81 points while market capitalisation dropped to N10.842 trillion to cap off a very brutal week for stocks.

This represents a N137 billion in five trading consecutive sessions while 27 stocks depreciated in value and 13 others appreciated at the sound of the closing bell. ABC Transport topped the losers’ chart with 10 per cent to close at 0.27 kobo per share. Seplat was next with 9.98 per cent to close at N522, Africa Prudential lost 9.92 per cent to close at N3.54, Chams dropped 9.09 per cent to close at 0.40 kobo while Neimeth declined by 9.09 per cent to close at 0.50 kobo.

On the other hand, Sovereign Insurance topped the gainers’ chart with 8.70 per cent to close at 0.25 kobo per share. NEM followed with 7.76 per cent to close at N2.50, Prestige gained 6.38 per cent to close at 0.50 kobo, Stanbic appreciated by 5.26 per cent to close at N46 while Royal Exchange garnered 4.35 per cent to close at 0.24 kobo. Volume of stocks traded stood at 235.22 million units while value of stocks traded stood at N1.36 billion in 3,130 deals. Sovereign Insurance topped the volume charts with the sale of 44.54 million shares valued at N11.135 million. Sterling Bank sold 24.73 million shares worth N65.766 million while Access Bank traded 20.97 million shares worth N147.46 million. Analysts remain hopeful that the bulls will return to the market and added that the reappointment of Governor of Central Bank of Nigeria, Mr Godwin Emefiele, for a final term of five years by President Muhammadu Buhari, would bring stability to the nation’s financial system.

Chairman, Chartered Institute of Bankers of Nigeria (CIBN), Abuja Chapter, Prof Uche Uwaleke, described the re-nomination of Emefiele as a good omen for the capital market.

Uwaleke, who is the Head of Banking and Finance Department, Nasarawa State University, added: “It is one development that speaks to policy consistency and will further consolidate macroeconomic stability, especially with respect to exchange rate and inflation.

“Investors, both domestic and foreign can have some degree of confidence in the direction of monetary policy, which is positive for the capital market. One thing is now certain: that the interventions by the CBN in critical sectors of the economy especially agriculture and non-agric-based SMEs will continue.

“These will rub off positively on economic recovery efforts especially now that the CBN under Emefiele has signaled an accommodative monetary policy stance.

It is equally positive for financial systems stability.”

However, Cordros Capital in an emailed note dated May 9, said, “in the absence of a positive catalyst, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term”.

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