Inventory market analysts have revealed that the uncertainty round overseas alternate (FX) availability and the nation’s normal financial insurance policies coupled with some robust fiscal insurance policies in 2016 aggregated to make sure an enormous lack of N604 billion by buyers within the Nigeria’s capital market.
The sector analysts additionally revealed that the Nigerian inventory market has adopted comparable loss sample within the final three years. It could be recalled that the Nigerian inventory market ended the yr 2016 in a loss place, that left traders with a mixed lack of N604 billion.
In abstract, the All Share Index (ASI) slumped by 6.17 per cent to shut 2016 at 26,874.sixty two factors from 28,642.25 at which it opened buying and selling on January four, 2016.
It follows that the market capitalization declined by N604 billion to shut at N9.246 trillion on December 30, 2016 from N9.850 at which it opened at the start of the yr. This unhappy growth within the inventory market adopted identical situation within the two earlier years to put up three yr lack of 34.ninety seven per cent.
Traders’ confidence remained considerably low as market web value had declined by N3.ninety eight trillion within the final three years. Within the 12 months 2016, the
Nigerian inventory market was largely overshadowed by cautious and speculative tendencies regardless of low cost valuations throughout board on the again of weak traders’ confidence, which was pushed primarily by the shrink within the economic system.
Sector indices confirmed that Nigerian Inventory Trade, NSE Premium and NSE Banking are the one sectoral indices that closed in inexperienced zone with 6.ninety eight per cent and a couple of.17 per cent achieve respectively. The opposite 9 sectoral indices closed in crimson, led by NSE Industrial Items and NSE Oil and Gasoline with 26.37 per cent and 12.31 per cent loss respectively.
Insurance coverage index went down by eleven.four per cent, NSE Major Board Index declined by 10.02 per cent, whereas NSE Lotus eleven and NSE 30 shed by 7.87 per cent and seven.18 per cent, respectively.
Others are NSE Customers, ASem and Pension with a lack of four.forty nine per cent, 1.fifty seven per cent and zero.sixty three per cent respectively.
Quarterly overview of the marketplace for the 12 months revealed that solely within the second quarter did the market publish a optimistic return of sixteen.ninety six per cent because of earnings.
Different quarters, first, third and 4 quarter posted a decline of eleven.sixty five per cent, four.27 per cent and 5.sixteen per cent, respectively as they mirrored the realities of a weak financial system as quoted firms reported important weak spot of their money-circulation, income and revenue-base as a result of impacts of receding economic system through the yr, which altered their valuations and fundamentals accordingly. This should have contributed to the continued bearish and destructive returns for the 12 months 2016.
The market additionally closed the yr with adverse market turnover as quantity and worth turnover declined by 6.86 per cent and forty.23 per cent to shut at 86.21 billion items and N566.24 billion, respectively.
For the yr, Dangote Flour led the gainers desk by 276.eleven per cent to shut at N4.25 per share. UBA Capital adopted with a acquire of 108.forty per cent to shut at N2.seventy three, whereas Whole gained by 103.39 per cent to shut at N299 per share.
Seplat went up by 87.19 per cent to shut at N379.ninety nine and Mobil rose by seventy four.38 per cent to shut at N279 per share.
However, Forte Oil led the laggards’ desk by seventy four.forty two per cent to shut at N84.forty three per share. Skye Financial institution trailed with a lack of sixty eight.35 per cent to shut at 50 kobo, whereas Caverton declined by sixty three.fifty six per cent to shut at ninety kobo per share.
Additionally, Diamond Financial institution declined by sixty one.forty seven per cent to shut at 88 kobo, whereas Sterling Financial institution shed fifty eight.forty seven per cent to shut at seventy six kobo per share. Some market analysts blame the present market pattern on the political, financial and monetary conditions within the nation.
On the outlook for 2017, analysts mentioned the developments within the international oil market, liquidity degree within the overseas change markets, and realignments in fiscal and financial insurance policies would dictate buying and selling sample and efficiency of inventory market within the yr.
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