By Peter Egwuatu
INVESTORS’ investment on the Nigerian stock market has dropped by N27.4 billion for the month of September this year as the Nigerian Stock Exchange, NSE market capitalisation which represents the market value dropped from N9.760 trillion at the beginning of trading for the month to close at the last trading day of September at N9.733 trillion.
Investors’ investment has dropped by 1.1 per cent Year to Date, YtD, while the NSE All Share Index declined by 0.3 per cent in the month of September, 2016 from 28,419.92 points to close at 28,335.40 points.
Market operators have opined that bargain hunting for blue chip companies will continue this week.
Speaking on the stock market performance, Mr. Mustapha Chike-Obi, former boss of Asset Management Corporation of Nigeria, AMCON explained that the market trades about ten million Dollars worth of securities daily but has capacity to do more.
He stated that the issue of market liquidity must be addressed without further delay, saying “There is need to look inward and that Government must begin to address those things that impede growth.”
On the last trading day in the month of September, the NSE closed 31 basis points, bps higher driven by bargain hunting on blue chip companies. However, the number of losers outweighed gainers.
The top mover of the day in terms of volume and values of trades was Ecobank Transnational Incorporated with 50.8million units and N583.74million worth of shares traded respectively. The top advancers of the day were Pharma-Deko appreciating by 9.4 per cent, followed by Nigerian Aviation Handling Company and Honeywell Flour mills with respective price increment of 4.9 per cent and 4.5 per cent. The top decliners of the day were Caverton Off-shore Support Group, Northern Nigeria Flour Mills and Neimeth International Pharmaceuticals decreased by 8.4 per cent, 4.9 per cent and 4.3 per cent respectively.
Meanwhile, the bond market closed last week on a bearish note as profit taking along the yield curve pulled yields south. Consequently, yields closed at 16.3 per cent on average, 20bps higher than the previous session.
According to operators “This week we expect to see mixed signals with positive sentiments driven by a rally in oil prices, while other investors book profits in order to bid at the PMA on Wednesday.”