NSE ‘Fact Sheet’ shows all equity market indexes ended Q1 in negative

The novel coronavirus (COVID-19) pandemic caused a severe slowdown in global growth in first-quarter (Q1) of 2020.

On the back of aggressive isolation measures and nationwide lockdowns in major economies, the first quarter of the year was characterised by weak consumer demand, steep declines in global oil prices and bearish stock markets.

At the NSE, all equity market indexes ended the quarter in negative territory.

When compared with its position in Q1’ 2019, the NSE-30 Index decreased by 35.20percent in Q1’20 to 902.37points; All Share Index at 21,300.47 points in Q1’20 represented decline of 31.38percent. NSE Premium Board Index was down by 20.08percent to 1,761.23 points. NSE Main Board Index also decreased by 37.87percent to 882.22 points. The NSE ASEM Index at 734.99 points at the end of Q1’20 dipped by 8.95percent.

Likewise, NSE Pension Index at 826.75 points in Q1’20 decreased by 30.41percent when compared with Q1’19 position. NSE Banking Index at 235.86 points also in Q1’20 decreased by 41.61percent; NSE Consumer Goods Index dropped by 54.24percent in 52 week period to 325.50 point. The NSE Insurance Index at 119.40 points in Q1’20 represented 5.22percent decline when compared with Q1’19 position.

Others are: NSE Oil/Gas Index (215.25 points or -25.91percent); NSE Lotus Islamic Index (1,512.63 points or -33.29percent); NSE Industrial Index (1,040.29 points or -16.09percent); NSE Corporate Governance Index (681.85 points or 44.46percent); NSE-Afrinvest Banking Value Index (610.88 points or -40.07percent); NSE-Afrinvest High Dividend Yield (1,123.75 points or -20.32percent); NSE Meristem Growth Index (980.26 points or -36.52percent); and NSE Meristem Value Index (1,091.33points or -21.41percent).

Though, trading activities on the Nigerian Stock Exchange (NSE) still increased in Q1 compared with the corresponding period in 2019. The total volume and value of trades increased by 19.78percent and 49.88percent respectively in Q1 of 2020. Despite major gains recorded in January 2020 when it became one of the best performing indexes in the world, the All Share Index closed the quarter at 21,300.47 points, down 31.38percent from Q1 2019.

The daily volume of securities traded on the NSE averaged 387.50 million units, while the average daily value of trades was N4.90 billion ($12.69 million). At the end of the quarter, the average PE ratio of The Exchange’s listed equities stood at 23.94, compared to 24.91 in the previous year.