Sustained Bargain Hunting in Bellwethers Drives Equities Market

Photo L-R: Oyinda Akinyemi, Head, Equities Market,  Stanbic IBTC Capital; Aigbovbioise Aig-Imoukhuede, Managing Director, Coronation Asset Management; Oscar Onyema, Chief Executive Officer, The Nigerian Stock Exchange (NSE); Funso Akere, Chief Executive Officer, Stanbic IBTC Capital; Abubakar Jimoh, Managing Director/CEO, Coronation Merchant Bank Group; Manji Cheto, Business Development Manager, London Stock Exchange (LSE); Tony Ibeziako, Ag. Head, Listing Business Division, NSE and Ade Ewuosho, Ag.

Sustained Sell Offs Pull YTD Return into Negative Region

Sustained sell offs in the local bourse, which have persisted for 11 days, pulled the All Share Index (ASI) 1.3% lower to 38,104.54 points, its lowest in 5 months while YTD return fell to a deficit of 0.4%. Consequently, investors lost N181.8bn as market capitalization fell to N13.8tn dragged majorly by NESTLE (-4.4%), DANGCEM (-1.0%) and INTERBREW (-4.8%). Activity level strengthened as volume and value traded inched 39.2% and 108.0% higher to 476.2m units and N9.9bn respectively.

Local Bourse Extends Losses into 8th Consecutive Session

The local bourse extended losses from last week into Monday’s trading session as the All Share Index (ASI) dipped 0.7% - its 8th consecutive daily decline - to settle at 39,040.44 points while YTD return further moderated to 2.1%. Consequently, investors lost N106.9bn as market capitalization fell to N14.1tn. Sell pressures in banking stocks - GUARANTY (-2.3%), ZENITH (-2.1%) and FBNH (-4.6%) – were largely responsible for today’s bearish performance. Activity level softened as volume and value traded declined 24.9% and 44.8% to 222.3m units and N1.6bn respectively.

Markets in Red as Investors Adopt Risk Off Strategy

–Week Ended May 18, 2018

Global Equities Market
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Sustained Bearish Run Drags Benchmark Index to 4-Month Low

The local bourse sustained its negative performance for the sixth consecutive trading session dragging the All Share Index (ASI) 1.1% lower to close at 39,723.85 points – lowest since the 4th of January, 2018 - while YTD return plunged to 3.9%. Accordingly, investors lost N154.6bn in value as market capitalization fell to N14.4tn – lowest since 9th January, 2018. The bears had the day as investors booked profit in bellwethers – NIGERIAN BREWERIES (-5.0%), ZENITH (-3.4%) and GUARANTY (-1.6%).

SEC Tasks Investors on Investment Diversification to Mitigate Risk

The Securities and Exchange Commission (SEC) says there is the need for retail investors to diversify their investment portfolio in order to mitigate risk.

The SEC Acting Director-General, Ms Mary Uduk, stated this at one-day maiden National discourse organised by Pragmatic Shareholders Association of Nigeria (PSAN) in Lagos state, south west Nigeria.

Uduk said that investors must learn to invest in various asset classes to mitigate risks and exposure.

Bearish Run in Local Bourse Extends to 5th Consecutive Trading Session

The bearish performance of the domestic bourse continued for the fifth consecutive trading session as the All Share Index (ASI) declined 25bps to settle at 40,150.55 points while YTD return moderated to 5.0%. Consequently, investors lost N35.8bn as market capitalization fell to N14.5tn. Profit taking in ETI (-2.2%), NIGERIAN BREWERIES (-0.7%) and DANGSUGAR (-2.5%) were the major drags to today’s performance. Nonetheless, activity level was mixed as volume traded fell 4.8% to 266.7m units while value traded rose 14.3% to N4.7bn.

Equities Market Extends Bearish Run

The local bourse closed in the red for the fourth consecutive trading session as the NSE All Share Index (ASI) shed 43bps to settle at 40,249.29 points while YTD return fell to 5.2%. Accordingly, investors lost N63.7bn in value as market capitalization settled at N14.6tn. Today’s bearish performance was attributable to losses in DANGCEM (-0.4%), ETI (-2.4%) and DANGSUGAR (-3.7%). However, activity level strengthened as volume and value traded rose 3.2% and 77.6% to 280.1m units and N4.1bn respectively.

Banking Stocks Drag Equities Market Performance

The domestic bourse opened the trading week on a negative note following sell offs in Tier 1 banking stocks – GUARANTY (-1.1%) and ACCESS (-1.8%) as well as FBNH (-2.7%). Consequently, the NSE All Share Index shed 12bps to close at 40,425.07 points while YTD return declined to 5.7%. Investors lost N17.2bn in value as market capitalization fell to N14.6tn. Similarly, activity level weakened as volume and value traded dipped 22.6% and 54.6% to 271.2m units and N2.3bn respectively.