ANXIETY as Nigerian Stock market lost N706.92 billion in just 10 days.
The equities market continue its bearish trend yesterday as NSE ASI depreciated by 0.81% to close at 31,372.90 basis points, compared with the 0.32% depreciation recorded previously.
Its Year-to-Date (YTD) returns currently stands at -9.48%
Market breadth closed negative as Mobil Oil led 8 gainers against 36 losers topped by Learn Africa at the end of yesterday’s session- an unimproved performance when compared with previous outlook.
Market turnover closes positive as volume climbed by 4.82% against 44.35% decline recorded in the previous session. Transcorp, Access bank and Zenith bank were the most active to boost market turnover. Zenith bank and Nigerian Breweries top market value list.
Julius Berger leads the list of active stocks that record impressive volume spike at the end of yesterday’s session.
NSE began the 2015 financial year on an unfavourable note with key measurement indicators tilting southwards to finish the second quarter with a loss of 3.46 per cent in market performance indices. The NSE’s market capitalisation depreciated by N56 billion to close at N1.421 trillion at the close of business by the end of second quarter (June 30) from N11.477 trillion opening figure at the beginning of trading in January.
The NSE All Shares Index dropped by 3.46 per cent or 1200.32 basis points for the period under review; from 34,657.15 points it opened during the beginning of trading, to close at 33,456.83 points.
The NSE Index hit its 2015 peak of 35,728.12 on April 2, the day after Buhari was declared the election winner.
Since then it has fallen eight per cent the index measures the performance of the stock market and also reflects how prices of stocks have moved, which in turn determines how much an investor gained or lost.
Foreign and domestic investors had, during the first half of the year, sold off Nigerian stocks due to the fears created by the 2015 general election tensions and fall in the prices of crude at the international markets. The tension between the Peoples Democratic Party (PDP) and its major opposition, the All Progressive Congress (APC) led to a lull in the equities market as investors, mostly foreign, evaluated the electoral process and its outcome.
Besides, Foreign Portfolio Investments (FPI) remained wary of the local bourse until the elections were concluded and possible violent fall outs curbed.
However, with the elections over and smooth handover to President Buhari, market watchers expected that these would herald a bullish market, but the reverse has being the case.
Added to these, is the delay by the new administration of Buhari to name ministers and other officials who will give clear policy direction of the economy.
This had cost investors on the Exchange about N237 billion during the last month of the first half of the year Investors had been particularly wary of the outlook for Nigeria, Africa’s largest economy and the world’s number four oil producer.
Global benchmark oil prices have fallen more than 50 per cent in recent months, diminishing the value of Nigeria’s currency and leaving a gaping hole in government revenue.
This necessitated the revising of the projected economic growth rate of Nigeria by the World Bank in 2015 from 6.3 per cent to 5.5 per cent.

READ ALSO  Airtel Touching Lives 2 entries ends