The Nigerian stock market sustained its downward trend last week as the market capitalisation of listed equities further closed lower at N12.92 trillion last Friday. This compares with market capitalisation of N13.45 trillion on September 30,2019, implying that in just eight trading days in October, listed stocks have shed N533.9 billion, representing an average of N66.7 billion daily.
The All Share Index (NSE) of the Nigerian Stock Exchange (NSE) ended the week at 26,533.78 points as against 26,987.45 points on October 4 and 27,630.56 points on the last trading day in September.
The last time the ASI fell as low as 26,000 basis points was between May 3 to May 9, 2017 when it hovered from 26,116.79 points to 26,756.21 points.
Further analysis showed that 59 percent of the losses or N313.06 billion was recorded between October 2 and 4, 2019 while 41 percent of the October market losses or N220.85 billion was recorded between October 7 and 11,2019.
At present, only 16 stocks have their prices closed in the positive territory. Topping the list of advancers is C & I Leasing which closed last Friday at N7.30 per share, representing 310.1 percent price appreciation year to date. Dangote Flour gained 224.1 percent year to date, as it closed last Friday at N22.20 per share. Cornerstone Insurance which closed at N0.39 per share is third on the table and has gained 95 percent year to date. ABC Transport closed at N0.44 per share, and that amounted to 51.7 percent price appreciation year to date.
MTN Nigeria has so far added 44.4 percent increase to its listing price which explains why it closed at N130 per share last Friday. Other stocks on the gainers’ list and the extent of appreciation in their prices include Chams, 30 percent; WAPCO, 28.5 percent; Caverton, 28.5 percent; John Holt, 25 percent; Union Bank, 25 percent; Continental Insurance, 18.3 percent; AIICO, 9.5 percent; Access Bank, 8.1 percent; Africa Prudential , 3.4 percent; Sterling Bank, 2.6 percent and Abbey Buildings, 1 percent.
On the flip side, we have Neimeth, -48.7 percent; GlaxoSmithKline, -51.0 percent; International Breweries, -58.7 percent; Guinness, -59.2 percent, and Thomas Wyatt , -91.1 percent as the worst performing stocks year to date.
Meanwhile, Dangote Flour and Global Spectrum Energy Services have postponed their annual general meetings having received authorisation from the Corporate Affairs Commission (CAC). The move by Dangote Flour to postpone its AGM followed its earlier announcement to the effect that it had received a binding offer on April 23,2019 from Olam International Limited for the acquisition of the issued shares of the company.
“Based on the forthcoming court ordered meeting, the board is of the considered opinion that it will not be practical nor effective to convene an AGM before the court ordered meeting and has therefore sought and obtained the approval of the CAC to hold the AGM no later than December 21, 2019. In view of the fact that the outcome of the court ordered meeting is unknown, the board is unable to propose a specific date for the AGM at this time”, a notice signed by Aisha Ladi Isa, company’s secretary, stated.
Global Spectrum Energy Services attributed its inability to hold its AGM to logistics issues. The company has promised to hold it on or before December 31, 2019.
