Investors who chose to hold Nigeria’s listed stocks since the beginning of this year till date are not smiling over record huge loss in the value of their investments now in excess of N1.2trillion.
Despite slightly positive close (+0.40percent) on Thursday, equity investors in Africa’s largest economy became worse off in this June with a record dip of approximately 5 percent which pushed the market further into the negative territory of -5.75percen year-to-date (YtD).
Market watchers foresee a continuation of the record bearish trend in the remaining trading sessions of this month as investors continue to sell down stocks amid weakened activity levels.
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“We expect cherry-picking and bargain hunting by investors to drive the market to a positive close”, Meristem research analysts had said in their recent note.
The equities market capitalization and All Share Index (ASI) which opened the year at N21.057trillion and 40,270.72 points respectively stood lower at N19.781trillion and 37,954.35 points at the close of trading on June 24, 2021.
The disappointing performance on the Bourse comes despite expectations that the market will see some bargain hunting activities as investors seek to take position in bellwethers that had fallen to attractive entry prices.
“We believe the negative performance will be sustained in the absence of a positive catalyst”, said Lagos-based analysts at Afrinvestor.
Though, it is possible for the market to reverse the losses in July as first-half (H1) corporate scorecards are released on the Bourse. This is because some investors may decide to buy stocks to qualify for interim dividend payments by companies known for paying interim dividends.
