Investors lose N368bn in five days as bears persist at NSE

Equities investors at the Nigerian Stock Exchange (NSE) lost N367.98 billion as bearish sentiments dominated the local bourse last week.

Notably, the local bourse recorded losses in all of the trading sessions of the week despite an uptick in activities as the market capitalisation closed at N21.19 trillion as against the week’s opening mark at N22.82 trillion.

Accordingly, the All-Share Index shed 1.7 per cent, week-on-week (w/w) to close at 41,709.09 basis points. Consequently, the Year-to-Date (YTD) return moderated to 3.6 per cent.

Activity levels were however strong, as trading volumes rose by 7.4 per cent for the week under review, while value traded rose by 6.4 per cent.

Notably, sell-offs in WAPCO, Zenith Bank, Nestle and Dangote Cement drove the weekly loss as their share value depreciated by 11.2 per cent, 4.4 per cent 3.7 per cent and 2.5 per cent respectively.

The sectoral performance was broadly negative as all sectors closed in the red. The Insurance index led the losers’ chart by six per cent descent, followed by Consumer Goods, Banking, Industrial Goods and Oil and Gas indices by 3.2 per cent, 2.3 per cent, 2.1 per cent and 0.2 per cent, respectively.

Investors are however advised to the advantage of the moderation in the prices of bellwether stocks and make re-entry ahead of the Full Year 2020 earnings announcement.

Analysts at Cordros however, noted that the recent hike in OMO rates by the CBN would continue to stoke uncertainties on the direction of yields, keeping risk-averse investors on the side-lines.

Thus, they project a zig-zag market performance in the week ahead. “Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”

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Investors lose N368bn in five days as bears persist at NSE