Proceedings on the floor of the Nigerian Stock Exchange (NSE) ended the first few days of the new month of July in the negative note as market capitalisation fell by N305 billion in five consecutive trading sessions. This is even as Sunday Sun observed that going further into the second half (H2) of the year, first year (H1) results which is expected to be released in the coming weeks, will determine the sentiment of investors towards bellwether stocks.
Equities kick-started the new month on a bearish note as the All Share Index (ASI) declined by 1.18 per cent – largest decline since June 6, 2019 – to 29,614.61 points, owing to sell-offs in GT Bank, Dangote Cement and Nigerian Breweries.
Year-to-Date loss (YtD) worsened to -5.8 per cent while market capitalisation dropped N155 billion to close at N13.050 trillion.
Trading in the domestic bourse sustained its losing streak for second consecutive session on Tuesday as the benchmark index declined by 0.74 per cent to close at 29,295.14 points, following sell-offs in bellwether stocks.
Thus, the Month-to-Date and Year-to-Date losses increased to 5.39 and 6.48 per cent respectively while market capitalisation decreased to N12.956 trillion as investors lost N94 billion.
The bearish performance of the local bourse was extended into the third consecutive session as sell pressures in Dangote Cement, Zenith Bank and Mobil dragged the index 0.07 per cent lower to 29,375.25 points while YTD loss remained at -6.5 per cent. Accordingly, investors lost N9 billion in value as market capitalisation closed at N12.947 trillion on Wednesday.
The market extended its bearish run for the fourth trading session of the week on Thursday as the benchmark index declined by 0.26 per cent to 29,300.09 points, putting it on course for the largest weekly decline since the week ended April 5, 2019.
YTD loss declined to -6.9 per cent while investors lost N33 billion in value as market capitalisation decreased to N12.914 trillion.
Friday’s session failed to make any difference as investors reacted sharply to the suspension of Airtel listing on the nation’s bourse. Thus, the ASI fell by 0.10 per cent to close at 29,270.25 points while market capitalisation closed the week at N12.901 trillion.
This represents a loss of N305 billion in one week and does not bode well for the stock market following the loss of N480 billion in the month of June.
At the end of trading on Friday, the volume and value of stocks traded stood at 298.40 million units and N1.82 billion, respectively in 3,377 deals.
Wapic was top on the activity chart with the sale of 78.33 million shares valued at N31.35 million. Morison traded 45.46 million shares worth N24.55 million while FBN Holdings transacted 35.47 million shares valued at N220.40 million.
Analysts are of the opinion that the state of the Nigerian economy is affecting the activities in the capital market and advised investors to position themselves in stocks with good fundamentals, history of good dividend payment and stocks trading below their fair value.
A stockbroker who spoke to Sunday Sun pleading anonymity said: “The situation is down to the fact that the economy is not doing well. The President is still trying to find the right cabinet and as such policies which are meant to move the direction of the Nigerian economy remains stale. But the market will bounce back.”
According to Vetiva research analysts: “H1 results of listed companies will determine market direction early in the new quarter while policy direction as determined by economic managers will play a major factor in the health of the general market.”
Meanwhile, pursuant to the post-listing requirements of the NSE, quoted companies have commenced the closed period for trading in their shares in respect of the audited financial statement for the half-year ended June 30.