Stocks market remains volatile

The Nigerian stock market remains highly volatile in the interim and its supportive fundamentals may not be strong enough to support rally this week as the realities of COVID-19 remain prevalent.

More Nigerians are dying from Coronavirus, new cases increasing and recoveries dropping. Investors will continue to price-in this risk to the economy and businesses.

“We continue to advise investors to trade cautiously and seek trading opportunities in only fundamentally justified stocks”, said equity research analysts at Cordros Capital.

“In our opinion, risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions,” the analysts said.

Investors had booked N186billion loss in the trading week ended June 19. The Index posted negative returns in four of the five trading sessions.

Amid this new lows, some investors going to the market this week may decide to increase bargains on the back of cheap valuations of a number of fundamentally sound stocks.

“With the consistent declines recorded in the review trading week, analysts at Lagos-based Vetiva Securities said they anticipate a rebound in the new week “on the back of cheap valuations of a number of fundamentally sound stocks, in the absence of any external shock that can again weaken investors’ confidence”.

The Nigerian Stock Exchange (NSE) All Share Index (ASI) decreased by -0.43 percent last Friday.

“We expect the market to witness the same sentiment in the next session,” according to FBNQUEST research analysts.

Last trading week, stock market dipped by -1.41percent. Fourteen (14) equities appreciated in price last week, lower than 34 equities in the preceding week.

Forty-seven (47) equities depreciated in price, higher than 31 equities in the preceding week, while 102 equities remained unchanged, lower than 98 equities recorded in the preceding trading week.

Month-to-date (MtD), it has decreased by -1.75 percent. The market’s negative return year-to-date (YtD) stood higher at 7.51percent.

The market was last week largely dominated by the bears, as a number of mid/large cap stocks closed the week lower.

The NSE ASI decreased to 24,826.75 points while the value of listed stocks decreased to N12.951trillion as against week open high of 25,182.67 points and N13.137 trillion respectively.

Dangote Cement Plc recorded the highest decline on Friday after its share decreased from N139 to N130, losing N9 or 6.47percent. In 3,695 deals, investors exchanged 174,676,912 units valued at N2.010billion.

NSE records positive growth in market turnover

By Iheanyi Nwachukwu • June 22, 2020

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.