Exchanging shut on the Nigerian Exchange (NGX) a week ago on a bearish note with a deficiency of N604 billion, following losses posted by profoundly promoted stocks. Speficially, the market capitalisation which opened the week at N20.579 trillion lost N604 billion to close at N19.975 trillion.
Likewise, the All-Share Index plunged 1,157.82 focuses or 2.93 percent to close at 38,324.07 interestingly with 39, 481.89 recorded on the main day of the week. An examination of the value development graph showed that 26 values posted cost appreciated against 41 washouts. C &I Leasing drove the laggards’chart in rate terms with 18.80 percent to close at N4.06 per share.
Royal Exchange Assurance followed with a deficiency of 18.42 percent to close at 62k, while Linkage Assurances Nigeria plunged 13.04 percent to close at 60k per share. Then again, Eternal beat the gainers’ table in rate terms, acquiring 21.21 percent to close at N8 per share. Prestige Assurance acquired 15.22 percent to close at 53k, while Sterling Bank rose by 12.84 percent to close at N1.67 per share. Altogether, 1.05 billion offers worth N11.54 billion were traded by investors in 17,233 arrangements during the week under survey.
This is conversely with a sum of 840.33 million offers esteemed N9.56 billion exchanged 13,239 arrangements the earlier week. Remarking on the week’s presentation, the Chief Operating Officer, InvestData Ltd., Mr Ambrose Omordion, ascribed the bearish state of mind to losses posted during the period by some blue chips. “The country’s securities exchange saw a bearish week because of high promoted stocks that appear to be overrated that endured losses on low profit yields,” Omordion said. He added that benefit taking and portfolio repositioning on the strength of first quarter numbers and monetary information in front of half year profit report added to the turn of events.
On the exhibition of the financial exchange this week, Omordion said the market may observer a bounce back contingent upon the result of the Monetary Policy Committee (MPC) meeting scheduled for May 24 and 25. He, in any case, said the MPC individuals ought not be in a rush to climb rates amidst the increasing instability in the country. “In the event that the rates are held, the market will breath out quickly, on situating for March year end inspected accounts, half year interval profit and second quarter income season,” he said. As per him, the principal quarter Gross Domestic Product information expected to hit the market on Monday is another factor that will decide the bearing of the financial exchange.
Additionally speaking, Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said the descending pattern a week ago was because of losses recorded via Airtel Africa, MTNN, Dangote Cement and BUA Cement. Kurfi told the News Agency of Nigeria (NAN) that the choice of the MPC would either empower the market to make some recuperation from the past misfortune or increment it, particularly if rates were not held as in the past.
