After moving from a week-open level of 39,737.80 points, climaxed to 40,012.66 points, and dropped to 37,249.93 points at the close of trading last week, equity market analysts believe that this trend by the Nigerian Stock Exchange (NSE) All Share Index (ASI) signposted intense price correction.
The stock market capitalisation which opened last week at N12.766trillion and later rose to N12.854trillion, declined to N11.966trillion at the close of last week’s trading.
Following this trend, the value of listed equities on the Nigerian Stock Exchange recorded huge decline of about N800billion, highest loss in years. Investment analysts said the stock market outlook signals intense price correction, an indication which caused most of them to maintain their previous position about the market.
At the close of trade last week at the Customs Street, the NSE-30 Index which measures the performance of largely capitalised stock at the Nigerian Stock Exchange dropped from 1,901.77 points to 1,779.74 points. NSE Consumer Goods Index also recorded a decline from 1,139.91 points to 1,056.12 points.
NSE Banking Index declined from 454.06 points to 415.77 points. NSE Insurance Index dipped from 146.85 points to 143.45 points. NSE Oil/Gas Index moved down from 188.76 points to 179.77 points. NSE Lotus Islamic Index also nosedived from 2,855.91 points to 2,653.73 points.
NSE Industrial Goods Index plunged to 2,253.78 points from 2,421.49 points at the beginning of last week; while the NSE ASeM which tracks stocks in the Alternative Securities Market declined from 1,000 points to 986.46 points.
“Market outlook reveals waning sell pressure as the bulls begin to garner moderate support from blue chip stocks in Consumer Goods, Oil and Financial sectors while the breadth closed with improved posture. We expect the profit-taking pressure to moderate further in the coming sessions. We encourage investors to maintain cautious and value approach,” said Proshare analysts.