Nigeria stock market decreased by 3.2% in June

Nigeria’s stock market failed to impress investors in June following a record dip by 3.2percent in the review month.

Negative sentiments that trailed stocks last month pushed its decline this year to a new high of -8.80 percent.

The record drop by -1.53 percent on the last trading day of the first-half (H1) has contributed to the unwelcome reign of the bears on the local Bourse.

This was fuelled by profit taking activities on large cap stocks like BUA Cement Plc, Dangote Cement Plc, Lafarge Africa Plc, Cadbury Nigeria Plc and Julius Berger Nigeria Plc.

The Nigerian Stock Exchange (NSE) All Share Index (ASI) decreased to 24,479.22 points on Tuesday June 30 as against preceding trading day high of 24,858.82 points.

Listed stocks value decreased to N12.769trillion from day open high of N12.967trillion. Investors booked about N198billion loss on Tuesday June 30.

In 4,464 deals, investors exchanged 280,667,420 units valued at N3.138billion.

The share price of BUA Cement Plc recorded the highest decline on Tuesday after moving from

N43 to N38.7, down N4.3 or 10percent.

Dangote Cement Plc also recorded a dip, from N128 to N127, down by N1 or 0.78 percent. Lafarge Africa Plc dipped from N10.8 to N10, shedding 80kobo or 7.41percent.

Cadbury Nigeria plc dropped from day open high of N7.5 to N6.75, losing 75kobo or 10percent while construction giant, Julius Berger Nigeria Plc share price moved from N7.45 to N6.75, shedding 70kobo or 9.40 percent.

Going into second-half (H2) of 2020, market watchers say the path to stock market remains cloudy amid pressure on corporate earnings, concerns about the exchange rate and the second wave of Covid-19 pandemic. As a result, investors are expected to be cautious as stock market remains highly volatile.

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By Hope Moses-Ashike • June 30, 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.