Capital market Investors lose N220bn in 4 days


As profit-taking persist in the equities market of the Nigerian Stock Exchange (NSE), Investors have lost N220billion of their investments in four days of active trading activities.

The Market capitalisation (the total value of tradable shares of publicly traded companies) in four day dropped by 2.22 per cent to N9.695 trillion on Thursday from N9.915 trillion market activities opened on Monday.

Similarly, NSE All-Share Index (NSE ASI) dropped by 2.21 per cent or 6,384.70 basis points from 28,841.67 basis points it opened on Monday to 28,203.20 basis points it closed today, tempering YtD loss to 18.6 per cent.

However, after today’s closing of the market, there was a major profit-taking in CAP (-4.9 per cent), 7UP (-0.2 per cent), Nigerian Breweries (-0.5 per cent) and Oando Plc (-five per cent).

Market activity came in mixed as volume traded was up by 27.3per cent, while market turnover fell by -18.4per cent. Though the number of deals traded was down -12 per cent, 182 million units of shares valued at N1.2 billion were traded in 2,127 deals.

.At the close of trading, all sector index closed in the negative. The Oil and Gas Index led top losers to on the back of pump and dump in Oando Plc to close the index negative by -0.61 per cent.

The bargain hunting in the Insurance Index took a breather to reverse yesterday gains as profit taking resume in AIICO (-1.1 per cent) to close the index negative by -0.07 per cent.
In the same vein, the Banking Index closed negative as negative investors sentiment persist in Guaranty Trust Bank (-0.4 per cent), FCMB (-3.1per cent) and Diamond  (-1.9 per cent) to decline the index performance by -0.06 per cent.

The consumer goods closed negative for the fifth consecutive trading day consequent on loses in the industry bellwethers; Nigerian Breweries  (-0.5per cent), Dangote flour (-4.9 per cent) and Dangote sugar (-1.6 per cent) to close the index negative by one per cent.

The Pension index, also  joined the losers list as price depreciation in high capitalized  and liquid stocks which are constituents of the index led the index to close negative by -0.1 per cent at the close of trade.

Analysts at InvestmentOne, said: “We advise that investors with a medium to longer term horizon take advantage of the currently depressed price levels and gradually build positions in quality names. Also, while we expect the market to remain volatile in the near term, we advise investors to remain cautious.”

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