Investors at the Nigeria stock market lost approximately N405billion in last trading week in January.
The bearish trend which persisted at the equities market till the last trading day in the review week ended Friday, January 31 led to a decline of 2.65percent in the market’s benchmark index.
The record loss pushed the year-to-date (Ytd) positive return lower to 7.46percent. Except consumer good and insurance sectors, all other key sectoral indexes closed the week in the red.
The NSE 30 Index which tracks the top 30 companies in terms of market capitalisation and liquidity declined by 3.06percent. Others are: NSE Banking (-5.17percent); NSE Consumer Goods (+0.09percent); NSE Industrial Goods (-2.83percent); NSE Insurance (+0.90percent); NSE Oil & Gas (-1.14percent); and NSE Pension (-3.77percent).
“The recent decision of the Central Bank of Nigeria (CBN) to increase Cash Research Requirement (CRR) for banks to 27.5percent is a downside risk”, analysts at United Capital said in a recent note to investors.
The review week saw many investors reduce their stakes in equities amid companies releasing their full-year 2019 results at the local Bourse.
“The ASI fell below 29,000 basis point due to persistent sell offs experienced during the week”, said equity research analysts at Vetiva Securities.
With more Full Year 2019 earnings results expected to roll in the new week, “mixed reaction is expected at the local bourse at week start,” the analysts added.
The Nigerian Stock Exchange (NSE) All-Share Index (ASI) decreased from 29,628.84 points to 28,843.53 points while the value of listed stocks decreased from N15.262 trillion to N14.857trillion.
As investors’ choice stocks appreciated in price, GTI Research analysts had expected to see a mixed reaction by active investors in this review trading week.
