NSE LIVE! Equities’ return worsens to -12.18%

In from Success Allantee …

The average year-to-date return at the Nigerian stock market was further depressed to -12.18 per cent yesterday, implying that an average investor has lost more than 12 per cent of his portfolio in nearly seven months. Inflation-adjusted return now stands at about 21.4 per cent.

Key value-based indices at the Nigerian Stock Exchange (NSE) closed in the negative as investors remained cautious and unexcited about the first half earnings reports of quoted companies. The All Share Index (ASI), the common index that tracks prices of all quoted companies, dropped by 0.25 per cent to 30,436.18 points as against its opening index of 30,510.95 points.

Aggregate market value of all quoted companies also dropped simultaneously from N10.458 trillion to close at N10.432 trillion. With 32 losers to 14 gainers, the selling sentiments were rampant across the sectors, forcing the market deeply into a buyer’s market.

The slowdown also reflected on the momentum of activities with declines in turnover volume, value and number of deals. Aggregate turnover stood at 154.34 million shares valued at N4.21 billion in 3,154 deals.

Market pundits were uncertain about immediate rebound citing macroeconomic challenges, which had negatively impacted corporate earnings in the first half.

“The current mood is expected to continue due to absence of positive catalyst to stimulate activities,” said analysts at SCM Capital.

Analysts at Afrinvest Securities called for medium to long-term investment strategy in order to ride over the current depression and earn modest returns over the years.

“Given that first half 2015 results released so far have not been sufficient in driving a rebound in the market, we advise investors to maintain caution and take position on fundamentally sound tickers,” Afrinvest Securities stated.

Read also: NSE LIVE! Equities remain negative as more companies declare earnings

Guinness Nigeria led the losers’ list with a drop of N2.32 to close at N131.68. UAC of Nigeria followed with a loss of N1.50 to close at N40. Nigerian Breweries dropped by N1 to close at N121. Stanbic IBTC Holdings lost 74 kobo to close at N21.76. PZ Cussons Nigeria declined by 70 kobo to close at N28.01. Guaranty Trust Bank slipped by 40 kobo to close at N23.80. FBN Holdings declined by 28 kobo to close at N7.22. Portland Paints and Products Manufacturing lost 20 kobo to close at N16.36 while Zenith Bank and African Prudential Registrars dropped by 14 kobo and 12 kobo to close at N16.36 and N2.87 respectively.

The three most active were Nigerian Breweries, with 21.65 million shares valued at N2.62 billion; United Bank for Africa (UBA), with 18.31 million shares worth N77.05 million while Guaranty Trust Bank recorded turnover of 11.03 million shares worth N262.64 million.

On the other hand, Seven-Up Bottling Company recorded the highest gain of N8 to close at N190. Lafarge Africa rose by N4.09 to close at N103.09. Forte Oil added N3.50 to close at N188.

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