Nigeria’s stock market extended losses
for the ninth session on August 16 as investors sold off shares from the
relatively liquid banking and consumer goods sectors.
for the ninth session on August 16 as investors sold off shares from the
relatively liquid banking and consumer goods sectors.
The market value of equities listed on
the Nigerian Stock Exchange declined to $14.8 billion (N12.803 trillion)
from $14.93 billion (N12.88 trillion) on August 17.
the Nigerian Stock Exchange declined to $14.8 billion (N12.803 trillion)
from $14.93 billion (N12.88 trillion) on August 17.
The NSE All Share Index dropped to
35,069.34 basis points from 35,288.23bps, tracking a 2.1 per cent fall
on the MSCI emerging market index, which also entered a technical bear
market, according to Reuters.
35,069.34 basis points from 35,288.23bps, tracking a 2.1 per cent fall
on the MSCI emerging market index, which also entered a technical bear
market, according to Reuters.
Thirty-nine companies recorded losses on Wednesday, while only 12 appreciated at the end of trading.
“Market sentiment shows little signs of
improvement as major indicators remain negative,” one trader was quoted
by Reuters as saying.
improvement as major indicators remain negative,” one trader was quoted
by Reuters as saying.
Nigeria’s stock market, once seen as a
darling of frontier investors, has slipped to become one of the worst
performers in Africa but its decline should open up buying opportunities
for long-term investors, analysts say.
darling of frontier investors, has slipped to become one of the worst
performers in Africa but its decline should open up buying opportunities
for long-term investors, analysts say.
Equities have fallen by more than 20 per cent so far after peaking in January. They rose by 42 per cent last year.
Stocks started to ease in late January
after the market was hit by a global risk-averse sentiment, amidst rate
rises in the United States which reversed capital flows to frontier
markets.
after the market was hit by a global risk-averse sentiment, amidst rate
rises in the United States which reversed capital flows to frontier
markets.
Mounting concerns over political risk in
the run-up to next year’s presidential election where incumbent
MuhammaduBuhari will seek re-election have accelerated losses for the
stock market.
the run-up to next year’s presidential election where incumbent
MuhammaduBuhari will seek re-election have accelerated losses for the
stock market.
The index of the nation’s top 10 lenders
shed 1.03 per cent while consumer goods stocks dropped by 1.47 per cent
to drag the main index down.
shed 1.03 per cent while consumer goods stocks dropped by 1.47 per cent
to drag the main index down.
UAC Property Development Company Plc,
which fell by 10 per cent, led the losers on Wednesday. Berger Paints
Nigeria Plc shed 9.72 per cent, OandoPlc was down nine per cent and
Diamond Bank lost 4.35 per cent.
which fell by 10 per cent, led the losers on Wednesday. Berger Paints
Nigeria Plc shed 9.72 per cent, OandoPlc was down nine per cent and
Diamond Bank lost 4.35 per cent.
