Market sheds N366bn as investors ignore undervalued stocks

Investors in Nigeria’s stock market booked about N366billion loss in the trading week ended Friday, March 14.

Banking, industrial, and oil & gas stocks were the major drivers of the NGX negative close in the review week, despite bargains recorded in insurance and consumer goods stocks.

This month, the market has decreased by 1.69 percent, while its return year-to-date (YtD) decreased to +2.98 percent.

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Following mixed sessions of positive and negative closes, the stock market still defied most analysts expectation of positive close, as it decreased by 0.51 percent in the review trading week.

Futureview research analysts had in their March 10 note expected the stock market to close the week on a positive note, “driven by renewed investor interest in undervalued stocks”.

They had expected favourable corporate actions and strong earnings reports to boost investors sentiment and support market recovery.

In the review week, stock investors walked cautiously on Custom Street, Lagos Island amid dearth of major catalysts for market rally.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation which started the review week at 106,538.6 points and N66.717 trillion respectively decreased to 105,955.13 points and N66.351 trillion.