The persistent sell-offs in bellwether stocks pushed the nation’s equities market to 20 months low as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell below 30,000 mark to close at 29,830.70 last week.
After losing 1.2 per cent the first week of 2019, the market declined further in the second week, going down by 2.6 per cent following weak sentiments among investors. The political tension has continued to keep investors away as they wait for the outcome of the general elections coming up in February and March.
The market hit a new low last seen in May 2017, on January 9, before a rebound on Thursday and Friday helped it to recover some losses. Save for the rebound in the two days, the loss recorded last week would have been higher than the 2.6 per cent. The market capitalisation went down by N301.4 billion to close a N11.1 trillion.
Apart from the NSE ASI that depreciated by 2.6 per cent, other sectoral indicators also closed in the red except the NSE Industrial Goods Index that appreciated 1.0 per cent. The NSE Insurance Index was the biggest loser, down 7.0 per cent, it was followed by the NSE Oil & Gas Index with 6.3 per cent. The NSE Consumer Goods Index dipped by 3.6 per cent decline. The NSE Banking Index closed 0.9 per cent lower.
Despite the bearish performance, some positive news hit the market last week. For instance, ABRAAJ, managers of the Aureos Africa Fund, said they would convert the $10 million loan stock in C & I Leasing Plc to equity. The $10 million was an unsecured, redeemable, convertible loan stock that matured at the end of 2018.
Commenting, the Managing Director/CEO of C & I Leasing, Mr. Andrew Otike-Odibi said: “This development is positive for our business as it improves the capital structure of the company and helps position it favorably for additional capital raise from the market in first quarter of 2019.”
Also, last week, Chairman of Cement Company of Northern Nigeria (CCNN), Alhaji Abdul Samad Rabiu said more companies from BAU Group will be listed on the NSE. CCNN, which is a member of the BUA Group, recently had a successful merger with Kalambaina Cement Company(KCC).
And Rabiu, who is also Chairman of BUA Group said the group was in discussion with the NSE so as to list other companies from the BUA Group.
“As you know BUA Group has other […]