Business

Stock market plunged investors into N326bn loss in January

Google+ Pinterest LinkedIn Tumblr

Findings have revealed that investors in the nation’s stock market lost a total of N326bn in January.

The equities market began the new year a negative note as investors lost N134.4bn at the close of trading on the first trading day of the year.

It dropped to its lowest level in more than one and a half years on January 9 as the market capitalisation of equities listed on the Nigerian Stock Exchange fell below the N11tn mark from N11.72tn on December 31, 2018.

Also, the market capitalisation dipped to N10.940tn, the lowest since June 5, 2017, while the NSE All Share Index fell below the 30,000 basis points mark to 29,336.80 bps.

The market capitalisation dropped by 1.89 per cent to N11.394tn on Thursday from N11.614tn the previous day while the ASI fell to 30,557.20 bps from 31,145.34 bps.

Thirty-two stocks recorded price depreciation, while just 10 had gains, at the close of trading.

Read also: Executive Order 007 will deepen private sector participation – Economist

Red Star Express Plc, which led the losers’ table, saw its share price dip by 9.09 per cent to close at N5.

First Aluminium Nigeria Plc, Niger Insurance Plc, Honeywell Flour Mill Plc and Julius Berger Nigeria Plc lost 8.57 per cent, 8.33 per cent, 7.69 per cent and 7.14 per cent respectively to close at N0.32, N0.22, N1.20 and N26 per share.

Sunu Assurances Nigeria Plc, McNichols Consolidated Plc, Learn Africa Plc, Vitafoam Nigeria Plc and Wema Bank emerged the biggest gainers, as they rose by 10 per cent, 10 per cent, 8.73 per cent, 6.67 per cent and 4.84 per cent respectively to close at N0.22, N0.33, N1.37, N4.80 and N0.65 per share.

All sector indices also closed negative – banking (-2.54 per cent), consumer goods (-1.71 per cent), oil and gas (-0.39 per cent), Industrial (-0.97 per cent), and insurance (-1.43 per cent).

Speaking on the trend, analysts at Cordros Capital explained that. against marked sell-offs across bellwether stocks, the Nigeria’s equities market closed the last session of the month on a negative note as the ASI dipped by 1.89% to 30,557.20 points.

“Our outlook for equities in the near-to-medium term is negative, and we guide investors to trade cautiously, amidst absence of a near term positive catalyst and political jitters ahead of the upcoming 2019 elections. However, macroeconomic fundamentals remain stable and supportive of recovery in the long term,” they said.

Leave a Reply

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.