Nigeria’s Stock Investors Lose N1.85trn Last Week

• Nigeria’s Stock Investors Lose N1.85trn Last Week

The Nigerian Stock Exchange (NSE) depreciated by 13.49 percent last week as global uncertainty eroded the profits of businesses amid fast-spreading coronavirus pandemic.

The NSE All-Share Index declined by 3,546.26 basis points or 13.49 percent from 26,279.61 bps recorded a week ago to 22,733.35 bps. While the market capitalisation of listed equities declined by the same 13.49 percent or N1.848 trillion to N11.847 trillion, down from N13.695 trillion it closed a week ago.

Travel restrictions, low oil prices and projected weak global growth impacted Nigerian Stock Market last week as investors continue to close open positions to avert losses, especially after the World Health Organisation (WHO) declared coronavirus outbreak a global pandemic.

The United States of America on Wednesday announced a ban on flights from European nations as the number of infected Americans jumped to a record-high with more than 37 deaths.

Activity level was high as many investors exit their positions, a total of 3.964 billion shares valued at N43.703 billion in 26,054 deals last week, more than the 1.814 billion shares worth N26.008 billion that was exchanged in 23,494 transactions a week ago.

The financial services industry led the most traded sector by volume with 3.547 billion shares valued at N33.623 billion exchanged in 19,150 deals while the Consumer Goods followed with 91.135 million shares worth N6.007 billion in 2,341 deals. The Conglomerates industry came third with a turnover of 88.406 million shares valued at N132.508 million exchanged in 678 transactions.

During the week, the three most traded equities by volume were Zenith Bank Plc, Guaranty Trust Bank Plc and the United Bank for Africa plc, accounting for 61.75 percent of the total shares traded and represented 67.64 of the total value traded in the week.

A break down of NSE report for the week shows out of the 92 stocks traded on Monday, only 1 stock recorded gain while 39 stocks closed in the read with 52 remaining unchanged.

On Tuesday, a total of 85 stocks were traded with 3 advancing positively, 33 stocks declined and 49 stocks were unchanged. The total number traded on Wednesday rose slightly to 87 but 18 stocks advanced positively while 20 declined with 49 remaining flat.

On Thursday and Friday, 85 and 95 stocks were traded with 3 stocks and 17 stocks advancing on Thursday and Friday, respectively.

The global uncertainty weighing on financial markets across the world remained as the world struggles to contain fast-spreading coronavirus.