In­vestors lose hope in eq­ui­ties mar­ket as year ends

The Punch - - CAPITAL MARKET - Sto­ries: Fey­isayo Popoola

EQ­UITY in­vestors are be­gin­ning to lose hope in the eq­ui­ties mar­ket as the year draws closer to an end.

In­vestors had started the year with high hopes as an­a­lysts had pre­dicted a favourable per­for­mance of the mar­ket, es­pe­cially in the sec­ond half of the year.

The Group Chief Ex­ec­u­tive Of­fi­cer, United Cap­i­tal Plc, Mr Peter Ashade, had coun­tered pre­dic­tions, say­ing the stock mar­ket was look­ing for some­thing to trig­ger a rally.

He said more pro-mar­ket pol­icy pro­nounce­ments and re­forms by the gov­ern­ment were needed to bol­ster in­vestor con­fi­dence in the do­mes­tic econ­omy.

He noted that the out­look for the eq­uity mar­ket was not overly favourable as he ex­pected per­for­mance to re­main tepid in the sec­ond half in the ab­sence of cat­a­lysts in the form of pro mar­ket poli­cies and re­forms that could spur re­newed buy­ing in­ter­est on the ex­change.

An­a­lysts at Afrin­vest Se­cu­ri­ties Lim­ited said on

Tues­day that they did not ex­pect a sus­tain­able re­bound in the eq­ui­ties mar­ket in the near term as in­vestor sen­ti­ment to­wards eq­ui­ties re­mained sour.

The mar­ket cap­i­tal­is­tion of eq­ui­ties de­clined by N16bn at the end of trad­ing on Tues­day, which brought the to­tal losses recorded so far in the year to N2.05tn.

The bench­mark in­dex de­clined 13 ba­sis points to set­tle at 26,660.44bps fol­low­ing sell­offs in Dan­gote Ce­ment Plc, In­ter­na­tional Brew­eries Plc and La­farge Africa Plc, which dragged the year-to-date loss down to 15.2 per cent.

Ac­tiv­ity level ad­vanced as vol­ume and value traded surged by 94.6 per cent and 133.1 per cent to 331.916 mil­lion units and N4.8bn, re­spec­tively.

Per­for­mance across sec­tors was bullish as four sec­tors recorded gains.

The bank­ing in­dex led gain­ers, up by 54bps due to gains in Ac­cess Bank Plc, United Bank for Africa Plc and Wema Bank Plc while the oil and gas in­dex trailed, up by 15bps due to price ap­pre­ci­a­tion in Oando Plc.

The in­sur­ance and con­sumer goods in­dices also gained 0.08 per cent and 0.01 per cent, re­spec­tively, on the back of price upticks in Lasaco

As­sur­ance Plc, Guin­ness Nige­ria Plc and Honey­well Flour Mills Plc.

On the flip side, the in­dus­trial goods in­dex emerged the lone de­cliner, down by one per cent, owing to profit-tak­ing in Dan­gote Ce­ment Plc and La­farge Africa Plc while the AFR-ICT in­dex closed flat.

In­vestor sen­ti­ment weak­ened fur­ther as the mar­ket breadth (ad­vance/ de­cline ra­tio) de­clined to 1.4x from the 2.1x recorded on Mon­day as 12 losers, led by unity Bank, out­per­formed 17 gain­ers, led by Chams Plc.

•L-R: Pres­i­dent, Shell Co­op­er­a­tive, Mr Ak­in­ro­timi Ak­in­to­mide; Di­rec­tor, Fed­eral De­part­ment of Co­op­er­a­tives, Mr Sani Idris; Man­ag­ing Di­rec­tor, Co­op­er­a­tive Mort­gage Bank, Mr Kabir Ayinde-tukur; Man­ag­ing Di­rec­tor, Shell Nige­ria Ex­plo­ration and Pro­duc­tion Com­pany, Mr Bayo Oju­lari; and Man­ag­ing Di­rec­tor, Coop Prop­erty De­vel­op­ment Com­pany Lim­ited, Mr Ian Gobo, dur­ing the ground break­ing cer­e­mony of ‘The Au­to­graph’ project at Banana Is­land, La­gos …on Tues­day. Photo: CMB

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