Nigeria stock market extends losses on waning bargains

Stock market

Nigeria’s stock market recorded another session of negative close by -0.05percent on Tuesday July 7 as investors failed to increase their bargains in a number of fundamentally sound stocks with prices that remain cheap and attractive.

Decreased activity on the buy-side of the remote trading session on the local Bourse helped to push prices of stocks lower with corresponding impact on the cumulative value of listed stocks. Okomu Oil led the losers’ league after its price decreased from N77.4 to N69.7, shedding N7.7 or 9.95percent.

It was followed by Unilever Nigeria Plc which decreased from N13.8 to N12.45, after losing N1.35 or 9.78percent; and MRS Plc which declined from a high of N13.8 to N12.45, shedding N1.35 or 9.78percent.

Dangote Cement Plc also made the top laggards list after dropping from N127 to N126, down by N1 or 0.79percent; and MTN N Plc which dropped from N116 to N115, shedding N1 or 0.86percent.

As a result, stock investors booked about N7billion loss at the close of trading session while the market’s year-to-date (ytd) negative return increased to -10.22 percent.

The Nigerian Stock Exchange (NSE) All Share Index (ASI) closed lower at 24,097.48 points as against preceding day high of 24,109.65 points while the value of listed stocks decreased to N12.570 trillion from preceding day high of N12.577 trillion. In 4,060 deals, investors exchanged 155,529,293 units valued at N2.6billion.

“From time to time we notice equity markets taking a pause, trading sideways for a month, before launching again upwards or downwards. One of the ways to measure the health of an equity market is its turnover.

“The Nigerian equity market’s turnover has been trending downwards recently, prompting the question: Where is the institutional investor? The answer might be: “Presumably, buying long-dated bonds, rather than equities,” according research analysts at Coronation Merchant Bank.