Taking a cue from analysts’ expectation that the stock market remains subdued, sales pressure rising from the activities of the bears resulted in the huge decline last week in the value of listed equities on the main-board by about N88billion.
The Nigerian stock market had open last week with main-board equities market capitalisation of N11.584trillion, but dropped to N11.496trillion at the close of deals last Friday indicating a weekly decline of about 0.76percent.
Equity dealers had last Friday in 4,164 deals exchanged 190,620,283 shares valued at N2.580billion. Deals in the shares of Continental Reinsurance plc, Transnational Corporation plc, Access Bank plc, Afromedia plc, and Guaranty Trust Bank plc contributed majorly to the volume of shares exchanged last Friday. At the close of deals Friday, Presco plc was the biggest gainer after its share price rose from N35.11 to N37.39, adding N2.28; while Unilever Nigeria plc lost most after dropping from N62 to N57.70, losing N4.30.
Analysts believe that the stock market was further battered because investors were apprehensive and switched to money markets instruments in view of high interest rates environment.
Likewise, the Nigerian Stock Exchange (NSE) All Share Index (ASI) recorded a weekly decline of 328.75 points or 0.89 percent from the week open level of 36,577.28 points to 36,248.53 points at the close of transactions last week.
More first-half (H1) 2013 financials were released on the Exchange last week, this included Dangote Flour Mills plc, FBN Holdings plc, and Secure Electronics plc.
As the stock market remains beaten by the bears, many investment advisers say the low prices of most stock right now are also potential opportunities for equity investors to position ahead of the third-quarter (Q3) corporate results within the next couple of months.
Also last week, Forte Oil plc presented its ‘facts behind the figures’ to the investing public at the Nigerian Stock Exchange. Akin Akinfemiwa, group chief executive of Forte Oil plc noted that the company’s strategy and engagement process has ensured that it considers itself in a good position to encourage investors and the market to build a reasonable expectation of returns-on-investment in the near future.
By: Iheanyi Nwachukwu