The influx of not-too-impressive first-half (H1) financial results of some listed companies further affects the performance of the Lagos Bourse.
After recording over N300billion in the trading week ended July 19, the stock market opened this week’s trading with additional loss of about N55billion.
At the sound of stock trade closing gong on Monday July 22, the market furthered into the red zone with a Nigerian Stock Exchange (NSE) All Share Index (ASI) recording a decrease of 0.40percent.
Year-to-date (ytd), the stock market is in negative return of 11.52percent.
This week, the outcome of the two-day Monetary Policy Committee (MPC) meeting will dominate the headlines and determine further direction of financial and capital markets activities.
The negative seen on Monday is in line with most market watchers expectation that the bearish performance will be sustained despite attractive prices in fundamentally sound stocks.
The NSE All Share Index and market capitalisation declined from 27,919.50 points and N13.607 trillion recorded as at Friday July 19 to 27,808.69 points and N13.552 trillion on Monday July 22.
“Looking ahead, we expect the tepid performance to continue in the market in the absence of catalyst that could spur positive sentiment”, said United Capital Plc analysts in their investment view for July 22-26 period.
However, they did not rule out the possibility of intermittent gain “owing to investors positioning for interim dividend-paying stocks”.
In 3,887 deals, stock traders exchanged 285,762,525 units valued at N2.244billion.
Only 14 companies gained as against 18 losers.
Nigerian Breweries Plc recorded the highest value loss, after its share price decreased from N59 to N56.1, losing N2.9 or 4.92percent; followed by MTN Nigeria Plc which decreased from a preceding day high of N128 to N126, after losing N2 or 1.56percent.
On the gainers table, Nestle Nigeria Plc topped other stocks after its share price increased from N1250 to N1260, adding N10 or 0.80percent; followed by UBA Plc which rallied from N5.5 to N5.95, adding 45kobo or 8.18percent.
Also, Lagos-based analysts at Vetiva said: “The NSE ASI traded below its opening level for most of the session before experiencing some volatility towards the close of trading courtesy of Dangote Cement Plc”.
As such, despite the attractive entry points across the board, they foresee another session of declines on Tuesday July 23.
Iheanyi Nwachukwu
