The Nigerian stock market routed further into the negative territory on Wednesday June 26 following losses recorded in heavyweights like Nestle Nigeria Plc and MTN Nigeria Plc (MTNN).
Week-to-date (Wtd), the market has decreased by 0.81percent, while year-to-date (ytd) negative return increased to -5.80percent.
Market watchers see no respite for the Nigerian Stock Exchange (NSE) All Share Index (ASI) on Thursday June 27 in the absence of catalysts in sight to boost the index.
Amid this trend, the NSE has started making case for investments in Exchange Traded Funds (ETFs) and has commenced an enlightenment campaign to increase investors’ awareness and participation in the ETFs as transparent and low cost investment option.
The Lagos Bourse dipped by 0.20percent at the sound of trade closing gong on Wednesday June 26, as its ASI closed at 29,609 points from 29,668.68 point recorded the preceding trading day. The value of listed stocks decreased from N13.074trillion to N13.047trillion, indicating a loss of N27billion.
Wema Bank, GTBank, Unilever, FBN Holdings and Flourmills were actively traded stocks on the review trading day. In 3,377 deals, equity traders exchanged 394,062,557 units valued at N3.268billion.
Nestle Nigeria Plc recorded the highest loss after its share price moved down from N1399.2 to N1350, losing N49.2 or 3.52percent, while Seplat Plc advanced most, from N495 to N500, adding N5 or 1.01percent.
“As first-half (H1) 2019 comes to an end, we may see a spike in activity as investors rebalance their portfolios and position for the second half (H2) of the year.
“The Airtel Africa IPO on the NSE expected at the start of H2’ 2019 could act as a lifeline like its competitor MTN Nigeria did”, according to Lagos-based analysts at Vetiva Securities Limited.
Iheanyi Nwachukwu
