Nigeria’s equities market loses over N200bn in 4 days

Listed stocks on the Nigerian Bourse have lost approximately N228billion within just four (4) trading days into this new month as sell-side activities increase.

The market furthered into the negative region after Thursday’s dip by 0.41percent. Month-to-date (MtD), it has decreased by 1.09percent while year-to-date (ytd), it is down by 2.25 percent.

As the bears gradually regain position on Custom Street, the stock market of Africa’s largest economy is not far from closing the first week of March in red. The market is worse off as investible funds continue to move out of equities due to impressive yields in the fixed income market.

“Nigerian equities have since maintained a southward direction, losing 5.6percent in February 2021… The question on many investors’ minds is largely to know if this is a temporary lull, a correction, or a significant crash”, according to United Capital research analysts.

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The analysts had reiterated that the sustained reversal in the yield environment weakens investors’ interest in equities.

“We view the current bearish performance in the market as a correction that is likely to extend through the period when yields in the fixed income market stabilize. We recognize this as an opportunity for investors to take advantage of lower prices to buy into stocks forecasted to deliver solid earnings in 2021, employing a patient approach in building up positions”, United Capital research said in a recent note.

The NSE All-Share Index (ASI) and Market Capitalisation which opened this week at 39,799.89 points and N20.823trillion respectively stood lower at 39,364.67 points and N20.595trillion at the close of trading session on Thursday. In 5,486 deals, investors exchanged 493,172,597 units valued at N4.722billion.

Fidson Healthcare led the laggards after its share price moved down from N4.9 to N4.41, losing 49kobo or 10percent. Northern Nigeria Flour Mills followed, after its share price decreased from N7.02 to N6.32, losing 70kobo or 9.97percent, while Nigerian Enamelware lost N2.2, from N22.1 to N19.9, down by 9.95percent.

NEM Insurance share price decreased from N1.91 to N1.72, losing 19kobo or 9.95percent, while NCR lost 34kobo or 9.91percent, after moving from N3.43 to N3.09.