Investors’ appetite in the Nigerian stock market
remains watered by a colossal loss in excess of N2.6trillion traced over
a 52-week period to June 30 2015.
BusinessDay checks at the Nigerian Stock Exchange (NSE)
“fact sheet” over that period shows more of negatives across major
traceable gauges like average daily transactions (volume and value of
stocks traded), and value of listed equities and bonds.
Though the trend has shown that the Lagos bourse is well
below the water this year in excess of minus 12 percent in return,
investors are still hunting for bargain in value stocks driven by
attractive valuation and a relatively clearer economic path for the
nation.
Nigerian stocks performance by sector and capitalisation
over the same 52-weeks period to June 30, 2015 shows that the value of
agriculture stocks declined by 9.26percent to N68.37billion from
N75.34billion as at June 30, 2014; conglomerates lost 39.47percent of
their values to N196.59billion from N324.75billion; construction/real
estate declined by 45.21percent to N125.72billion from N229.45billion;
consumer goods was down by 17.61 percent to N2.96trillion from
N3.6trillion; and financial services was down by 14.54percent to
N3.38trillion from 3.96trillion.
Also, healthcare stocks lost 10.40percent of their values
to N67.95billion in the 52-week period from N75.83billion; ICT stocks
declined by 51.25percent to N37.99billion from N77.92 billion;
industrial good recorded 52-week loss of 19.64percent to N3.66 trillion
as at June 30, 2015 from N4.55trillion; natural resources stocks value
dropped by 5.52 percent to N7.18 billion from N7.59billion; oil &
gas stocks also recorded value decline of 25.83percent to N786.56
billion from N1.06 trillion; while services rose to N134.38 billion, an
increase of about 87.57percent from N71.64billion as at June 30, 2014.
At the Nigerian Stock Exchange, average daily volume of
stocks traded declined from June 30, 2014 level of 456.70million to
394.58million as at June 30, 2015. Average daily value of stocks traded
declined from N5.01billion to N4.56billion; average daily transactions
also decreased from 5,000 to 4,722.74; while number of listed companies
decreased from 192 to 187.
The rub-off of these negatives reflects on total market
capitalisation (bonds and equities) at N17.02trillion from June 30, 2014
level of N19.09trillion.
Listed Nigerian equities have lost N2.06trillion having
declined from N14.03trillion as at June 30, 2014 to N11.43trillion as at
second quarter to June 2015; while the value of bonds rose from
N5.06trillion to N5.58trillion in the same period.
“The NSE is in need of new listings, not least to
represent more accurately the structure of the economy. The more liquid
stocks are dominated by banks and consumer goods companies.
“An energy company has announced plans to list in Lagos
within one year, and there are unconfirmed reports surrounding a leading
telecoms operator”, the Gregory Kronsten led team of research analysts
at Lagos-based FBN Capital said in their recent note.
“We have often said that the Federal Government could help
the process along. When the auction of the frequency spectrum licenses
in the 2.6GHz band finally takes place, we do not see why awards could
not be conditional upon a partial listing,” the analysts added.
Between January and June 2015, total foreign transactions
at the Nigerian Stock Exchange reached N588.99billion, a slight increase
from N587.15billion when compared with January to May period of 2014.
Recently at the recent Lagos Business School breakfast
session, Bismarck Rewane and his team of analysts noted how the
volatility in forex and interest rate markets fuel consumer and investor
anxiety. This is in addition to investors’ expectation of federal
government cabinet lists which is now expected in a few days from now.
Iheanyi Nwachukwu
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