Nigerian Stock Exchange trading floor

Stock Investors Lose N585bn In 1 Week

By Nse Anthony-Uko,
(Sundiata Finance) – Stock investors at the Nigerian bourse lost about N585billion in the trading week to June 23 as the review week closed with Market Capitalisation at N11.107trillion, down from a record high of N11.692trillion at week open.
Research analysts believe that the loss was due largely to intermittent profit-taking as some stocks were put on offer by more investors. On the positive side, the recent prices of value stocks present opportunities for investors who are looking for re-entry points into the market.
Though, United Capital analysts are holding an overweight position in Nigerian stocks, advising investors to walk cautiously on Customs Street. They are considering that downside risks from lower oil prices and negative surprises in half-year (H1) 2017 earnings could temper the current market enthusiasm. Ayodeji Ebo, managing director at Lagos-based Afrinvest Securities Limited who linked the bearish trend to profit-taking, explained that, “We are in the mid-year and most stocks have gained significantly since first-quarter (Q1) 2017, so portfolio managers and proprietary traders are moving to cash out”. He further noted the likelihood of the bearish trend continuing till the end of the month “and recovery is expected by the first week of the new month.” According to Ebo, “The bearish trend is not a negative sign because the volumes are still high, so it is not that people are leaving the market.
The trend presents opportunities for new investors to enter the market at the current prices”. Twenty-three (23) equities appreciated in price during the review week, lower than thirty-eight (38) equities in the preceding trading week. Fifty-two (52) equities depreciated in price, higher than forty-two (42) equities in the preceding week, while ninety-eight (98) equities remained unchanged higher than ninety-three (93) equities recorded in the preceding week. The All Share Index (ASI), the market’s benchmark performance indicator which stood at 33,810.56 points at the beginning of the trading week closed last week at 32,122.14 points, down by 4.99percent. A total turnover of 2.311billion shares worth N24.577billion in 27,836 deals were traded last week by investors on the loor of the Exchange in contrast to a total of 2.737billion shares valued at N32.042billion that exchanged hands last week in 32,217deals. he Financial Services Industry (measured by volume) led the activity chart with 1.783billion shares valued at N15.865billion traded in 15,948 deals; thus contributing 77.17percent and 64.55percent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 239.226million shares worth N571.910million in 1,251deals; and Consumer Goods Industry with a turnover of 85.663million shares worth N4.522billion in 3,673 deals.

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