Investors lose N116bn net worth in August
Investors’ net worth succumbed to pressures from profit taking at The Nigerian Stock Exchange in August 2017 as the value of their investments slumped by N116 billion within the month.
A monthly data from the Nigeria Stock Exchange showed that market capitalisation during the period shed N116 billion to close at N12.237 trillion as against N12.353 trillion posted in July.
Similarly, the All-Share Index which opened for the month at 35,844.00 lost 339.38 points or 0.95 per cent to close at 35,504.62 following price depreciation.
Also, the turnover of shares traded decreased by 13.63 per cent with an exchange of 7.48 billion valued at N198.45 billion transacted in 97,071 deals. 8.66 billion shares valued at N97. 08 billion traded in 89,911 deals in July.
Financial services was the most attractive sector for investors as they traded in 5.53 billion shares worth N61.98 billion in 53,211 deals.
Access Bank was the most active in the sector, accounting for 963.22 million shares valued at N9.82 billion transacted in 4,944 deals, followed by Zenith Bank with 620.44 million shares valued at N14.93 billion traded in 7,467 deals.
A further breakdown of the month’s activity chart indicated that Industrial Goods sector came second in the month’s activity chart with a turnover of 536.04 million shares worth N96.98 billion achieved in 4,555 deals.
Dangote Cement was the toast of investors in the sector, accounting for 446.05 million shares valued at N94.04 billion achieved in 1,291 deals, while Lafarge Africa traded 34.92 million shares worth N2.03 billion in 1,797 deals.
Consumer Goods followed with an exchange of 531.89 million shares valued at N33.77 million transacted in 20,869 deals.
Dangote Flour was the toast of investors in the sector, accounting for 141.51 million shares worth N893.64 million in 3,861 deals and Dangote Sugar recorded a turnover of 100.96 million shares valued at N1.36 billion in 3,173 deals.
Uche Uwaleke, head of banking and finance Department, Nasarawa State University, Keffi, said that the market sentiments in September will be influenced by the crude oil prices, the liquidity situation in the foreign exchange market, and implementation of the 2017 budget.
Uwaleke added that unfavourable recent rating by Fitch of B+ with a negative outlook could dampen foreign investors’ sentiment.
He said the National Bureau of Statistics GDP growth figure for the second quarter of 2017 expected to be released this month and the outcome of the CBN Monetary Policy Committee meeting scheduled late in September will also influence the trajectory of the market.
According to him, just like in August, the market direction will be determined by the performance of high-cap stocks such as Dangote Cement.
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