The value of Nigeria’s listed stocks decreased by about N2.53trillion month-to-date (MtD) as the local bourse remains broadly bearish amid rising yield environment in the fixed-income market.
“As we have observed many times over the past few months, rising Naira market interest rates have set the stage for investors to rotate out of equities and into fixed income securities, and therefore point to a correction in the equity market,” said Lagos-based analysts at Coronation Research in their recent note.
As at September 30, the Nigerian Exchange Limited (NGX) All Share Index (ASI) was 49,024.16 points while equities market capitalisation stood at N26.451 trillion.
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Nigerian Exchange Limited had on October 5 listed by introduction Geregu Power Plc. Geregu’s 2.5 billion ordinary shares were listed at N100 per share. The share price rose to N115 as at close of trading on Friday.
As at Friday October 28, the NGX-ASI and market capitalisation depreciated week-on-week (WoW) from 44,396.73 points and N24.182 trillion respectively to 43,912.64 points and N23.918trillion.
In the review trading week to Friday October 28, the market decreased by 1.09percent or N264billion despite three (3) days of positive closes as against two days of negatives.
The market closed in red as investors failed to cherry-pick stocks with sound fundamentals as third-quarter (Q3) earnings season enters full gear.
The market’s positive return year-to-date (YtD) decreased to +2.80percent, while this month it has decreased by 10.43percent.
While some investors sold mostly insurance, consumer goods, and oil & gas stocks others bargain-hunted industrial and banking stocks.
