Q1’2021: Equities market dips by 3.04 per cent as investors lose N638bn

Despite having a record-breaking return of 50 per cent at the close of trading in the year 2020, the Nigerian Stocks Exchange (NSE) has taken a steep walk towards the red line to record a 3.04 per cent dip by the end of the first quarter of 2021.

The overall market performance indicator, All-Share Index (ASI), declined by 1,225.59 basis points or 3.04 per cent to close at 39,045.13 basis points on March 31, 2021, as against 40,270.72 basis points recorded on January 4, 2021.

Consequently, the market capitalisation which represents the market value of all listed companies lost N628 billion to close the period under review at N20.429 trillion from N21.057 trillion at which it opened for trading activities on January 4, 2021.

At the end of the first month, the local bourse ended January with positive sentiments from the previous year, gaining 5.3 per cent.

However, since January, the Nigerian equities went southward to lose 5.6 per cent in February and 1.9 per cent loss in March.

Despite impressive results submitted to the NSE and robust dividend payments, especially following a financial year marred by the Covid-19 Pandemic, Nigerian stocks suffered major losses due to several factors some of which include rising yields in government securities, reallocation of portfolios by investors, profit-taking, and the deteriorating situation in the economy.

ALSO READ: Chukwuma was a credible voice of transparency ― Buhari

Last week, the NSE ASI depreciated by 0.76 per cent in the week ended Thursday, April 1, to reverse the Week-on-Week (WoW) gain recorded in the previous week after seven concurrent weekly losses.

The total market capitalisation at the close of the market on Thursday was N20.36 trillion, compared to N20.52 trillion in the previous week.

Last week, prices of 42 equities appreciated, 22 depreciated in price while the remaining 98 equities maintained their prices as the previous week.

During the week, prices of 42 equities appreciated, 22 depreciated in price while the remaining 98 equities maintained their prices.

There were lesser trading activities in the equity market for the week as there were four day trading as a result of the public holiday declared on Friday to celebrate Easter. Thus, 1.45 billion shares worth N19.04 billion were traded through 17,400 deals which is 5.6 per cent and 10.7 per cent less than the volume traded and value traded in the previous week, respectively.

On the activity chart, the financial services industry topped, trading 1.03 billion units of shares valued at N13.37 billion through 9,179 deals in the week, as the financial industry alone contributed 71.5 per cent and 70.2 per cent to the total equity turnover volume and value, respectively, in the week.

This was in tandem with the top traded equities by volume which are: Guaranty Trust Bank Plc, Union Bank Nig. Plc and Wema Bank Plc. They accounted for 46.4 per cent and 54.3 per cent of the total market equity volume traded and value traded, respectively, in the week.

The conglomerates followed on the activity chart with 131.37 million traded shares valued at N578.4 million. Volume traded in the conglomerates’ sector accounted for nine per cent of the entire market. The consumer goods industry was also highly traded during the week as 92.94 million shares worth N1.75 billion were traded through 2,892 deals during the week.

Looking ahead, analysts expect the mixed trend to continue as portfolio reshuffling and adjustment ahead of Q1 numbers and economic data in the face of rising dividend and fixed income market yields.

NIGERIAN TRIBUNE

Q1’2021: Equities market dips by 3.04 per cent as investors lose N638bn