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The thirty most capitalised and liquid stocks are at the receiving end of the severe downturn of the Nigerian stocks market, which has failed to respond to any form of stimulus that had been hoped would see the market turn the corner in 2019.
Listed companies on the Nigerian NSE30 index worsened in terms of return to investors, leaving only four of total listed firms on the NSE 30 index with positive return so far in the year, as hopes of a dovish Federal Reserve, successful conclusion of 2019 elections, oil price rally, and expectations that earning seasonings would convince the lethargic market turn to dust.
Analysis revealed that at the end of the first quarter of 2019, 12 out of 30 most capitalized companies on the exchange showed positive returns to investors as their share prices weathered bearish pressure in the market.
However with the market remaining negative, only four of the NSE 30 stocks show positive returns in what would be testament to the strong sell-offs in the space.
As the end of trading on Wednesday, year to date performance of the equity market plunged to -10 percent, a double digit decline for the first time in 2019.
Consequently, average year to date performance of companies listed in the NSE30 sub-index deteriorated to about -6 percent against -0.15 percent at the end of Q1 2019.
Of the 30 stocks considered, Dangote flour has appreciated the most, gaining 137.22 percent since trading commenced for 2019. Sterling Bank (31.57%) and Union Bank (20.53%) remained the only other NSE 30 stocks with double digit growth while Forte Oil has gained 9.75 percent on year to date.
The grim performance of the Lagos bourse raises questions as to the possibility of seeing more stock slump-even currently appreciating … Read More...