Stock investors caught in web of over N460bn loss year-to-date

Stock investors at the Nigerian bourse who chose to hold their equities till date have booked losses in excess of N464billion, BusinessDay trend watch reveals.

Ahead of the expected recovering in this second-half (H2) of 2019, many smart investors are buying value stocks following recent bear reign in the market which pushed many equities to new lows.

The stock market opened this year 2019 with record value of N11.721trillion but stood at N11.257trillion at the close of trading on Wednesday April 17. Year-to-Date (YtD) returns currently stands at -4.64percent.

The market looks not good enough to recoup this huge loss in one day as trading closes on the Nigerian Stock Exchange (NSE) today preparatory to Easter celebration.

The NSE All Share Index (ASI) extended gains on Wednesday April 17, 2019 by 0.76percent to 29,970.86point from 29, 746.24 points recorded the preceding trading day. The value of listed equities on the Nigerian Bourse advanced on the review trading day by N84.37billion.

The session was characterised by the publication of first-quarter (Q1) 2019 results of three of the Tier-1 banking names (Access Bank Plc, Zenith Bank Plc, and GTBank Plc) indicating that earnings season is in full swing. No fewer than 16 stocks gained as against 17 losers.

Despite extended gains seen Wednesday on the NSE, some analysts expect the Nigerian stock market activity to remain low. Recently, Jumia became first African start-up to list on New York Stock Exchange (NYSE), raising $200million on first day of its listing.

Now valued at $1.5billion, Jumia Technologies AG, is founded in Lagos, Nigeria by two ex-Mckinsey French entrepreneurs in 2012 with MTN, Africa’s biggest telecoms company.

In 4,025 deals recorded on Wednesday April 17, stock traders exchanged 216,012,863 units valued at N3.227billion. Access Bank Plc, UBA Plc, Lasaco Plc, Zenith Bank Plc, and FCMB Plc were actively traded stocks on the NSE.

Nestle Nigeria Plc stock price recorded the highest advance from N1500.3 to N1580, adding N79.7 or 5.31percent. Dangote Cement Plc followed from N186 to N188, adding N2 or 1.08percent.

Nigerian Breweries Plc rose from N64 to N64.85, adding 85kobo or 1.33percent. Access Bank Plc increased from N6.05 to N6.65, adding 60kobo or 9.92percent. Dangote Flourmills Plc increased from N10.1 to N10.4, adding 30kobo or 2.97percent.

On the losers table, Seplat Petroleum Development Company Plc dipped from N590 to N570, losing N20 or 3.39percent. GTBank Plc declined from N35.6 to N34.75, losing 85kobo or 2.39percent.

Cement Company of Northern Nigeria Plc also dipped from N16.9 to N16.3, losing 60kobo or 3.55percent. Africa Prudential Plc was also down from N4.18 to N4, losing 18kobo or 4.31percent; while UAC-Property Development Company Plc declined from N1.66 to N1.5, losing 16kobo or 9.64percent.