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Stock market: Investors lose N1.8 trn Year to Date as sell pressure persists

By Peter Egwuatu

The woes by investors in the nation’s stock market continued yesterday as the Year to Date, YtD loss hit over N1.8 trillion.

The Nigerian Stock Exchange, NSE market capitalisation which represents investors’ worth of investment in the market  closed at N11.822 trillion from N13.609 trillion recorded at the close of trading in December 2017.

Consequently, the stock market

losses worsened to -15.3 percent with the NSE All Share Index, closing at 32,382.58 points.

Stock
The floor of Stock exchange

Analysis of the market showed that investors lost over N12.8 billion in the trading on Wednesday as the NSE market capitalisation, closed at N11.822 trillion from N11.834 billion recorded on Tuesday.

The bearish sentiments as manifested in sell pressures persisted, on the Exchange, NSE following losses in blue chip companies on Wednesday thus pulling All Share Index down by 0.1 percent to close at 32,382.58 points from previous close at 32,417.70 points.

Activity level was mixed as volume traded declined 61.5 percent to 134.5million units while value traded improved 32.2 percent to close at N1.9billion.

Top traded stocks by volume were FCMB (18.3million), Fidelity Bank (17.2million), and FBNH (15.8millon) while top traded stocks by value were Dangote Cement (N500.2million), Guaranty Trust Bank (N444.7million) and Nestle Nigeria (N203.5million).

Bullish sector performance

Despite a bearish performance in the benchmark Index, sector performance closed bullish as three of five sectors under coverage closed higher.

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The Insurance Index led gainers up 0.8percent as buy interest in Continental Insurance Plc (+7.2 percent) and Mutual Benefit (+7.7 percent) drove the Index. Similarly, the Industrial Goods and Banking indices trailed, gaining percent and three bases points, bps respectively driven by investor positioning in CAP Plc (+10.0 percent), Fidelity Bank(+6.1 percent ) and Zenith Bank (+0.5 percent).

Reacting on the market development, analysts at Afrinvest Research, said: “ Against expectations, the local bourse closed negative today( Wednesday). Nevertheless, we believe strengthening investor sentiment and noticeable buying interest supports our outlook for a bullish close for this week.

Commenting as well, analysts at Lagos based investment firm, Cordros Capital said: “We guide investors to trade cautiously in the short-to-medium term, as selloffs are likely to persist, amidst the absence of a positive catalyst, as well as likely negative sentiments of investors (particularly foreign players), as a result of political concerns ahead of the 2019 election.”


Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.