Stock Market Loses N816bn In May
The total trading on the floor of the Nigerian Stock market in the month of May has seen Equities declined by N816 billion in the month of May.
Remarkably, the Nigerian Exchange Limited’s Market Capitalisation which opened trading for the month on Tuesday May 4th, 2021 at N20.85 trillion lost N816 billion, representing 3.91 percent at the close of transaction for the month on Monday 31st, 2021 at N20.034 trillion.
Similarly, the All-Share Index (ASI) depreciated by 1,396.54 index point or 3.50 percent to close at 38,437.88 basis point in the end of May from 39,834.42 basis point it commenced trading with for the month.
Under the period in review, the loss of the market was due to profit taking occasioned by sell-off. However, a capital market analyst said nothing was galvanizing equities anymore after investors had stopped reacting to the impressive Q1 2021 results declared in April by companies.
Analyst at the Highcap Securities Limited, David Adonri said, “From later part of January up to the first quarter of March and later part of April. Then from later part of April when the year’s result started hitting the market, contrary to expectation that Covid-19 would affect the performance of listed companies on the fundamentals of the market, a lot of companies were able to weather the storm and Were able to come up with impressive full year result and the Equities market started reacting to the full year result and that was when we saw the recovery of the market taking place. But before then, due to the market correction, the yield on bonds has started going up in the early part of the year which made equities to decline.”
He added that, “But with this new price sensitive development, with impressive full year result, financial assets started moving to equities again and further led to the recovery of the Equities market in later part of April and early May.
But after that reaction to the full year result, nothing else is driving the market and you have seen a lot of activities in the bonds market or fixed income and there is nothing to drive equities and equities have been decelerating and that is the situation with the Equities market.”
Meanwhile, during trading session on Monday, the All-Share Index and Market Capitalization continued recent resurgence, climbing by 0.47 percent.
The NGX had also rose by 0.56 percent on Friday last week, halting a nine day consecutive depreciation.
The ASI rose by 180.93 index point or 0.47 percent to close at 38,437.88 basis point up from
38,256.95 basis point it closed on Friday.
Also, the market capitalisation gained N94 billion or 0.47 percent to close at N20.034 trillion from N19.940 trillion.
A total of 201.857 million shares worth N2.119 billion in 3,827 deals were traded on Monday, compared to 228.674 million shares valued at N3.671 billion in 3,318 deals that exchanged hands the previous trading session.
The market breadth returned negative with 22 laggard stocks and 17 advanced equities.
MRS Oil Nigeria Plc led the gainers’ chart in percentage terms by 9.57 percent to close at N12. 60 Kobo per share.
In the same vein, Vitafoam Plc rose by 8.91 percent to close at N11 per share, while Chams Plc appreciated by 5 percent to close at N0.21 Kobo per share.
PZ Cussons Plc and AIICO Insurance Plc jumped 3 77 and 3 45 percent to close at N5. 50 Kobo and N1. 20 Kobo per share respectively.
Conversely, the losers’ table was dominated in percentage parameters by Royal Exchange Plc dipped 9.88 percent to close at N0.
73 Kobo per share.
Also, consolidated Hallmark Insurance shed 9.59 percent to close at N0. 66 Kobo per share, while Mutual Benefit Assurance Plc Plc declined by 8.51 percent to close at N1.72 Kobo per share.
Neimeth Pharmaceutical Plc fell by 8.33 percent to close at N0. 44 Kobo per share, while Regency Assurance Plc lost 8.16 percent to close at N0. 45 Kobo per share.
Veritas kapital Assurance was the most active stock trading at 29. 780 million shares worth N5. 956 million, while Zenith Bank ended trading as the most valuable
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