As investors lose N84bn in 5 days
Stories by Peter Egwuatu
THE Nigerian stock market may return positive this week after closing negative last week as investors lose N84 billion of their investment value on the Nigerian Stock Exchange, NSE.
Financial analysts forecast that the stock market this week might experience a bullish run in the early days of trading as some companies are expected to release positive half year, HI’18 results.
Last week, the Nigerian stock market further fell Week-on-Week (W-o-W) by 0.62 percent on sustained profit taking activities even as volume of shares traded improved but at lower prices. The Banking and Industrial Goods stocks took a further hit along with the heavily weighted stocks in the consumer goods space, hence the negative return.
Consequently, investors lose N84 billion of their investment value represented by the NSE market capitalisation, which closed last weekend at N13.545 trillion from N13.629 trillion it closed penultimate week. Meanwhile, analysts at Cowry Asset Management Limited, said: “This week, we expect the local bourse, NSE, to close flat in the green territory as early-bird companies release their half year results which in our opinion would be largely positive.”
In their own prognosis, analysts at Vetiva Capital Management said: “After a largely bearish week, bargain hunting supported the market to a positive close at week close. However, we note that sentiment remained weak – evidenced by still negative market breadth. Hence, we foresee tepid performance for the market at week open.”
Furthermore, analysts at Cordros Capital, a Lagos based investment firm said: “We guide investors to trade cautiously in the short-to-medium term, amidst continued selloffs, and the absence of a foreseeable one-off trigger in the near term. However, our positive view of Nigeria’s long term macroeconomic outlook, in addition to the likelihood of lingering external risks settling, remain supportive of long-term gains.”
Commenting as well, a stock broker, with Capital Bancorp Plc, Mrs Ayoola Opeyemi, said, “The on-going bearish trend was partly due to reaction of foreign portfolio investors who are selling shares in anticipation of uncertain political atmosphere in Nigeria next year.” However, Ayoola expressed optimism that the second half would generate rally, especially, when quoted companies begin to release their results.
Meanwhile, twenty-one (21) equities appreciated in price last week, lower than twenty-seven (27) in the penultimate week. Fifty-five (55) equities depreciated in price, higher than forty-five (45) equities of the previous week, while ninety-three (93) equities remained unchanged lower than ninety-seven (97) equities recorded in the preceding week.