Investors at the Nigerian Stock Exchange (NSE) lost about N137billion in just one trading week to Friday May 10, 2019. This resulted to the All Share Index (ASI) declining by 1.25percent week-on-week (WoW).
The stock market had opened the review week at a record value of N10.979 trillion. At a record level of N10.842 trillion market capitalisation and All Share Index of 28,847.81 points as at Friday, it implies the stock market has lost 8.22percent of its year-open value.
“As the All Share Index continues to trade comfortably below 30,000 points, the outlook appears dim. However, we expect investors to take advantage of beaten down prices at week open but do not rule out the possibility of further sell-offs”, Vetiva research analysts said in the Friday, May 10 note.
In the review trading week, the NSE 30 Index was down by 1.43percent; NSE Banking (-2.77percent); NSE Consumer Goods (-0.23percent); NSE Industrial Goods (-0.36percent); NSE Insurance (-1.74percent); NSE Oil & Gas (-5.29percent); and NSE Pension Index (-2.20percent).
“Thus far in first-half (H1) of 2019, major bourses across Emerging and Frontier markets have witnessed a positive turnaround relative to 2018 and the performance has been largely buoyed by the dovish chorus across global central banks.
“However, the Nigerian Stock Exchange appears missing in action, as a surprise interest rate cut in March, some impressive corporate announcements and a relatively peaceful pre-and post-election period failed to stimulate the market”, said research analysts at United Capital Plc in their May 9 note to investors.
On Thursday May 9, President Muhammadu Buhari asked the Senate to confirm the reappointment of Godwin Emefiele as Governor of the Central Bank of Nigeria (CBN). Emefiele will continue the herculean leadership tasks at the apex bank for a second five years.
In addition, United Capital research analysts linked the relatively lacklustre performance by the NSE to lack of foreign interests, adding among other factors that “inactivity at the primary market segment has continued to make the market less attractive to foreign portfolio investors (FPIs).”