NIGERIAN EQUITY SHRUNK 14 PER CENT 2018

Market capitalisation  in the equity segment  of the Nigerian  stock exchange  shrunk by 14 per cent to N11.73tr after superlative growth in 2017 that earned international  attention. 

According to the CEO of the Exchange,  Mr Oscar N Onyema the All share index of the market hit 10 year high  45,092.83 by January 2018 but from the second quarter onwards it was downwards most of the way leading to 31,430.50 by year close 

Most depressed were the Industrial  sector with 37.34 per cent drop in its index from 1975.59, the second tier market with 26.99per cent drop in its index and Consumer  Goods which recorded 17.34 per cent in its index. 

Least affected  was the Oil and Gas sector where the index dropped by only 8.61 per cent and Insurance with 9.25 per cent drop,  ended being the only sector alongside Oil and Gas  with single  digit decline.


He said that this was prepared by political risks,  oil price volatility and bearish sentiments  from rising global yields. 

Mr Onyema was reviewing the market in  2018 at the Exchange 's head office on Monday  January  14. 

He explained  that traded volume  at the market did not drop though,  instead it rose to 101.43 be shares from 100.46bn in 2017.

The fixed income market too grew within the year with market capitalisation  closing at N10.17tr, up 12  per cent on 2017's N9.10 tr. 

There was also double digit growth in its turnover as well rising by 22per cent to N949.07bn from N775.78bn.

As usual the Nigerian  Federal Government  paced new bond issues within 2018 being responsible  for 79.30 per cent of new issues 

Naturally,  downturn in the equity market affected the Equity Traded Fund segment of the market. It's market capitalisation  dropped by 8 per cent to N6.13bn from N6.69bn, traded value  declined by 56 per cent to N205m from N467.65m while traded volume  tumbled by 83 per cent to 10.73m units from 62.27m in 2017.

As for 2019 Mr Intent declared: "Domestically,  we believe sentiments  in the first half will be driven by uncertainty  in oil prices as well as the 2019 general elections ".

After the elections  and with swift approval  and implementation  of 2019 budget, he added "..we anticipate  a return of listings during the year with an uptick in market activity during the second half"

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