The Nigerian stock market opened this week on a negative note, eroding preceding trading day’s gains. As a result of the dismal outing on Custom Street on Monday, June 24, the market’s loss year-to-date (YTD) has increased to -5.16percent.
Market watchers noted that neither the speech by the Central Bank governor about the 5-year policy direction of the apex bank nor the announcement by Airtel Africa last week about the listing date and Initial Public Offering (IPO) price was able to save the day from loss. At the sound of the trading going on the Nigerian Bourse, stock investors lost N19billion.
The Nigerian Stock Exchange (NSE) All-Share Index (ASI) lost 0.14percent to close at 29,809.20 points as against the preceding day close of 29,851.29 points, while Market Capitalisation closed at N13.136 trillion as against the preceding day close of N13.155 trillion.
Only 24 stocks gained as against 19 losers. Nigerian Breweries Plc led the laggard while Nestle Nigeria Plc share price recorded the highest advance.
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Though some analysts did not rule out the possibility of bargain hunting on select counters on Tuesday, June 25, their concern remains that the market still struggles because of a dearth of the market driver(s).
For instance, equity research analysts at Lagos-based Vetiva who noted that prices of stocks across the board remain deflated and present an attractive entry point for investors, still foresee another session of declines on Tuesday.
Afrinvest analysts expect that investors will continue to take a position in fundamentally sound stocks “as we approach the H1:2019 earnings season”.
The volume of stocks traded increased by 202percent, from 189.95million to 573.67 million, while the total value of stocks traded increased by 145.41percent, from N4.16billion to N10.21billion in 4,076 deals.
Iheanyi Nwachukwu
