By Nse Anthony-Uko
(Sundiata Finance) – The Year-to-Date (YtD) return of the Nigerian stock market stood lower at 37.38per cent last Friday as more investors took profit from the market on recent gains amid dearth of major catalyst that could support possible rebound. The market capitalisation of listed equities on the Nigerian Stock Exchange (NSE) declined to N12.72trillion against week open level of N13.166 trillion.
The Nigerian Stock Exchange All-Share Index (ASI) which stood at 36,920.56 points on Friday August 18 indicated a decline of 1,278.04 points or 3.35 per cent from week open level of 38,198.60 points. The stock market could not reverse the record decline despite last Friday’s rally which was lifted by shares in banking, cement and a consumer goods maker. Last week performance tracked most analysts’ expectations from the bourse.
For instance, Vetiva Capital research analysts had anticipated cautious trading at the start of last week, noting seeming profit-taking on some banking names despite the release of better than expected half-year (H1) scorecards from Zenith Bank and GTBank Plc. Transactions on Nigeria’s stock market rose 7.13per cent to N220.27 billion ($699.3 million) in June from a month earlier, lifted by increased flows from foreign investors, Stock Exchange data showed.
Foreign equity buyers have increased their stake in Nigerian stocks as the nation’s economy outlook brightens showing prospect of exiting recession amid improving FX liquidity. The price of oil, Nigeria main source of dollar revenue dipped on Friday as part of a broad-based selloff across markets, and despite signs that crude markets are gradually tightening. The NASD OTC market for unlisted securities closed its trading day on Friday 18 August 2017 lower compared to the preceding Friday August 11. The Market Capitalisation of unlisted securities trading in this platform closed last week at N404.15 billion, indicating 2 per cent decline against N412.80 billion the preceding weekend. The NASD Unlisted Securities Index (USI) decline by 2percent last week to close at 597.21 points as against a record 609.99 points the preceding Friday.