Year-to-date (ytd) returns from the Nigerian stock market declined to 6.79percent on Friday (6 April 2018) even as equity investors lost about N240billion this week.
The stock market declined by 1.6percent in the first trading week in April as the bears dominated Customs Street trading, despite positive corporate earnings that were reported.
Nineteen (19) equities appreciated in price last week, lower than 40 in the preceding trading week. Fifty-three (53) equities depreciated in price, higher than 40 equities of the preceding week, while 99 equities remained unchanged, higher than 91 equities recorded in the preceding week.
The week was another four-day trading week, as the Federal Government declared Monday, April 2 as a public holiday for the Easter celebrations.
The market recorded total turnover of 1.765 billion shares worth N26.562 billion in 20,265 deals in contrast to a total of 2.328 billion shares valued at N28.927 billion that exchanged hands the preceding week in 25,530 deals.
Vetiva Capital analysts in their April 3, 2018 equity research anticipated another modest performance in this second-quarter (Q2) of 2018 to be “driven by improving economic landscape and expectation of better first-quarter (Q1) 2018 earnings.”
In the trading week to April 6, 2018, the Nigerian Stock Exchange (NSE) All Share Index (ASI) declined to 40,841.14 points, from a high of 41,504.51 points as at the preceding weekend.
Likewise, the value of listed equities closed at N14.753trillion last Friday, a decline from N14.993 trillion recorded the preceding Friday March 30.
Stocks that have failed to impress investors this year include UnityKapital Assurance Plc which lost 54percent of its share price; Unic Insurance which also declined by 60percent; and Sovereign Trust Insurance Plc (-60percent).
Others are: FTN Cocoa Processors Plc (-60percent); and Courteville Business Solutions Plc which recorded a decline of 54percent year-to-date.
After four months of dormancy as a result of failure to form a quorum in the heart of executive and legislative government face-off, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria last week held its first meeting of the year.
At the end of the two-day policy meeting, all members of the Monetary Policy Committee (MPC) in attendance voted to leave key monetary policy rates unchanged.
GTI research analysts in their outlook for the month of April 2018 expect positive economic environment to dictate major activities in the month.
“We expect to see a lower reading for March inflation, an improved first-quarter (Q1) GDP and improved March PMI (already released). These are expected to have a positive impact on Q1 earnings releases. This would likely buoyed market reprising considering that we have witnessed extended oversold of main indicators as a results of recent market correction and significant profit taking,” according to GTI research analysts.
By and large, GTI expects a positive market bearing in this month. In the meantime, they strongly advise investors to take a keen interest on firms’ fundamentals before taking an investment position on such firms.
