Investors Lose N506bn Despite Impressive Earnings Releases

[Edoman]

The two-week long bullish performance in the Nigerian stocks market came to a halt last week as investors lost N506 billion despite broadly positive corporate releases during the week. The All Share Index plunged 1,231 points or 2.85 per cent week-on-week to close at 41,935.90 points while year-to-date return declined to 9.66 per cent. Also, investors lost N506 billion in value as market capitalisation fell to N15.002 trillion. Capital market analysts attributed the bearish performance of last week to sell pressures in bellwethers in the Banking and Consumer Goods sectors such as Zenith Bank, Nestle and Guaranty Trust Bank, which all released impressive results for full year, 2017. Performance across sectors was largely negative as all indices closed in the red save the Insurance index, which inched 0.25 per cent higher on the back gains in NEM Insurance and Mansard Insurance. The Banking index led laggards, down 8.35 per cent dragged by profit taking in UBA, Zenith Bank and Access Bank. The Oil and Gas and Consumer Goods indices trailed with a decline of 1.64 per cent and 1.59 per cent, respectively as investors sold off positions in Conoil, Seplat, Unilever Nigeria and Dangote Sugar. Similarly, sell offs in CCNN and Dangote Cement drove the negative performance of the Industrial Goods index week-on-week down by 0.24 per cent. Market breadth for the week closed negative with 25 gainers as against 60 losers. Associated Bus Company led the gainers by 14.29 percent increase to close at 48 kobo per share. John Holt followed with a gain of 12.50 percent to close at 54 kobo, while NEM Insurance appreciated by 11.57 percent to close at N2.70 per share On the other hand, Japaul Oil led the losers table by 30.93 percent to close at 67 kobo per share. Fidelity Bank declined by 22.48 percent to close at N2.31, while Unity Bank shed 21.51 percent to close at N1.35 per share. Similarly, activity level softened as weekly volume and value traded declined 8.29 per cent and 20.56 per cent to 2.444 billion shares worth N36.665 billion in 26,712 deals. Outlook For This Week This week, analysts expected bullish activity in the market as investors re-position to take advantage of the lower prices amid good corporate results released last week. Analysts at Cordros Capital Limited said, “Despite the loss recorded last week, we reiterate our positive outlook for the equities market, as strengthening macroeconomic fundamentals suggest legroom for gains still exist.” Analysts at Afrinvest Limited noted that “although the market performed negatively last week, we believe this has created bargain hunting opportunities. Hence, we expect a rebound in the market as investors take position in fundamentally sound stocks that declined.”

http://www.akelicious.net/2018/03/investors-lose-n506bn-despite.html