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Economic Uncertainty Plunges Stock Market, Investors Lose N83 Billion in 7 Days



stock bear - Investors King

The Nigerian Exchange Limited (NGX) extended its decline in the week ended March 18, 2022. The Exchange sheds 0.33% amid rising economic uncertainty, harsh business operating environment, among others.

During the week, only 21 equities gained in price while a total of 45 equities lost points. The remaining 90 equities closed flat, indicating a broad-based weak sentiment in the stock market.

As expected, the activity level dropped with investors trading 2.449 billion shares worth N20.653 billion in 20,764 deals, in contrast to a total of 2.798 billion shares valued at N23.859 billion that exchanged hands in 22,970 deals last week.

Sectorial analysis showed the financial services industry led the activity chart with 1.810 billion shares valued at N11.556 billion traded in 11,233 deals. Therefore, contributing 73.91% and 55.96% to the total equity turnover volume and value, respectively.

The ICT Industry followed with 349.937 million shares worth N4.050 billion in 1,292 deals. In third place was The Conglomerates Industry, with a turnover of 101.523 million shares worth N548.693 million in 1,084 deals.

FCMB Group Plc, ETranzact International Plc, and Fidelity Bank Plc were the three most traded equities and accounted for 1.472 billion shares worth N5.064 billion in 1,006 deals. The three contributed a combined 60.12% and 24.52% to the total equity turnover volume and value, respectively.

Market value of listed equities declined by N83 billion from N25.566 trillion it closed last week to N25.483 trillion this week. The NGX All-Share Index shed 0.33% or 154.81 index points to 47,282.67 index points. The year-to-date gain adjusted to 10.69%.

Similarly, all other indices finished lower with the exception of NGX Meri value, NGX lotus II and NGX Industrial Goods indices, which appreciated by 0.76%, 0.12% and 0.14% respectively While NGX Asem, NGX Growth and NGX Sovereign bond indices closed flat.

Rising inflation amid persistent forex scarcity are some of the challenges businesses operating in Nigeria are facing. On Friday, manufacturers had demanded that the federal government reverse tax and levies on importation of petroleum products.

Other issues are fuel scarcity and the total collapse of the power grid.  Almost 200 million Nigerians are thrown in darkness yet they can not power their electricity generators due to fuel scarcity. The productivity of these businesses drop and subsequently dragged on their stock values.

Earlier in the week, one of Nigeria’s most respected entrepreneurs and investors, Tony Elumelu attributed the situation to Nigeria’s growing insecurity that prevented her from taking advantage of the recent jump in crude oil price. He claimed 95% of the nation’s crude oil production is lost to theft.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigerian Exchange Limited

Investors Lose N720bn in Midweek Sell-Offs



Nigerian Exchange Limited - Investors King

Investors at the Nigerian Exchange Group lost N720 billion on Wednesday, the third consecutive day of bearish activity on the exchange.

The Exchange has now lost a combined N1.54 trillion in the last three days.

On Wednesday, the All-Share Index plummeted by 1.31% to 99,302.37 points while market capitalization dropped to N54.32 trillion. This downward spiral brought the year-to-date returns to 32.80%.

Market breadth remained negative with only five gainers compared to 52 decliners.

Notable gainers included PZ Cussons, Juli Plc, and Axa Mansard, while FCMB Group, Lafarge Africa, and Nigerian Breweries led the decliners with losses of 10% each.

Bearish sentiments spread across various sectors, particularly Banking, Insurance, and Consumer Goods, experiencing declines of 6.90%, 3.72%, and 1.20%, respectively.

The negative trend was fueled by sell-offs in prominent stocks like Sterling Financial Holdings, Wema Bank, and AccessCorp.

Despite improved trading volume and total deals, which rose by 41.28% and 15.40% respectively, the total traded value fell by 4.80% to N5.83 billion.

Transcorp Plc emerged as the most traded security by volume, while Zenith Bank led in traded value at N1 billion, indicating mixed sentiments among investors amidst market uncertainties.

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Nigerian Exchange Limited

FBN Holdings, Multiverse, MTN Nigeria Lead Losers on Nigerian Exchange



Stock - Investors King

FBN Holdings, Multiverse, and MTN Nigeria emerged as the top losers on the Nigerian Exchange Limited (NGX) on Tuesday as market capitalisation dipped by N773 billion.

FBN Holdings, one of the most capitalized financial firms, declined by 10% to close at N30.60 per share.

This drop comes after the company had recently risen to prominence in the financial sector.

Multiverse, an active player in the industrial goods sector, also shed 10% to settle at N15.30 per share while MTN Nigeria saw its shares dip by 9.94% to N222.90 per share.

The downward trend in these key stocks contributed to the overall bearish performance of the Nigerian Exchange as the All-Share Index dipped by 1.39% and market capitalisation moderated to N55.04 trillion.

Market sentiment remained negative, with 27 losers outweighing 10 gainers, indicating widespread sell-offs across various sectors. Africa Prudential Plc, Omatek, and Juli Plc were among the few gainers.

Despite the challenges faced by these companies, market analysts remain cautiously optimistic about the prospects of the Nigerian Exchange.

They emphasize the importance of monitoring market dynamics and making informed investment decisions amidst the prevailing volatility.

As the Nigerian Exchange navigates through turbulent waters, investors are advised to exercise prudence and diligence in their investment strategies to mitigate risks and capitalize on potential opportunities that may arise in the market.

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Nigerian Exchange Limited

Nestle, Eterna, Fidson Drag Nigerian Exchange Down, Wiping Out N51bn



stock bear - Investors King

The Nigerian Exchange (NGX) opened the week in the red as Nestle Plc, Eterna, and Fidson Healthcare Plc closed lower to wipe out a combined N51 billion from the market capitalization.

Nestle Plc shed 10 percent to close at N990 per share while Eterna and Fidson Healthcare Plc plummeted by 9.97 percent and 9.82 percent to settle at N15.80 and N15.15 per share, respectively.

At the close of trading, the All-Share Index (ASI) dipped by 0.09 per cent to 101,995.53 points and the NGX market capitalization fell to N55.81 trillion.

This downturn reflects investors’ concerns about the stability of these key companies amidst broader economic uncertainties.

Analysts had anticipated a bearish sentiment as investors sought guidance from economic policymakers and corporate earnings reports.

With the NGX struggling to find solid footing, investors remain cautious about their portfolio allocations, especially with rising fixed-income yields and impending monetary policy decisions.

The trading session saw a marginal increase in transaction volume, rising by 1.14 percent to 294.32 million units.

However, the value of transactions surged by 12 per cent to N6.72 billion, indicating intensified trading activity despite the overall market decline.

Also, the number of deals rose by 29 percent to 9,957, showcasing heightened market participation.

While the banking sector recorded a modest 1.35 percent gain, driven by increased interest in FBN Holdings, JaizBank, and Sterling Financial Holdings Plc, other sectors faced challenges.

The consumer goods and oil/gas sectors experienced notable declines, contributing to the overall negative sentiment.

As market participants await corporate earnings reports and the outcome of the Monetary Policy Committee meeting, the NGX remains susceptible to volatility, highlighting the need for cautious investment strategies in the current economic landscape.

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