Stock market declines by 0.32% in one week

Nigeria’s equities market was down by 0.32percent in the trading week ended Friday October 18 while its year-to-date (YtD) negative return stood at -15.85percent.

The market’s record negative in the review trading week was mainly due to sell offs in mid/large cap stocks.

The stock market which opened the review week with All Share Index (ASI) and market capitalisation at 26,533.78 points and N12.917 trillion respectively, closed the review week with ASI at 26,448.62 points and market cap of N12.875trillion. The value of listed equities on the Nigerian Stock Exchange (NSE) decreased by about N42billion.

All the NSE sectoral indices closed in the red except the NSE Consumer Good Index (+0.12percent) and NSE Insurance Index (+2.37percent). Others are: NSE 30 Index (-0.81percent), NSE Banking Index (-2percent), NSE Industrial Goods Index (-0.31percent), NSE Oil & Gas Index (-0.22percent), and NSE Pension Index (-1.03percent).

“Investors continued to react negatively to diverse policies in the banking sector while the performance of the consumer goods and industrial stocks are negatively affected by stiff and unimpressive macro-economic environment. However, we believe current price levels offer good entry point for mid/long term investors”, said research analysts at Lagos-based Vetiva Securities.

Despite seeing opportunities for bargain hunting, some analysts had expected the bearish sentiment in the market to persist as there are no major catalysts to boost investor confidence.

“We expect the index to continue to ramble in the negative territory. Our pessimism is on the back of the absence of any indicator to suggest possible triggers for a rebound in the near term,” said Afrinvest Research.

As companies’ third-quarter (Q3) results trickle in at the Bourse showing improved earnings, value hunters are advised to buy stocks with the history of dividend payment, which also have the potential for capital appreciation.