Investors Hold Back on Nigerian Stocks

Nigerian Stocks

By Modupe Gbadeyanka

The level of participation on the floor of the Nigerian Stock Exchange (NSE) dropped last week following happenings in the local and international scenes.

Last week, the political environment in Nigeria was tense as a result of an internal crisis in the ruling All Progressives Congress (APC) and investors kept an eye on how things played out.

While that was going on, traders at the stock market were keeping another eye on the rising cases of COVID-19 in the country as around the world.

One of the comments that sent shivers down their spines was from the Presidential Task Force on COVID-19, which said there could be another lockdown of the economy if things get worse.

According to data obtained by Business Post, last week, the volume and value of shares traded by investors depreciated to 739.4 million and N8.6 billion respectively.

In the previous week, a total of 1.1 billion shares valued at N10.1 billion were transacted by market participants at the exchange.

It was observed that much of the equities were concentrated in the financial services industry, which led the activity chart with 457.9 million shares valued at N3.8 billion traded in 8,062deals, contributing 61.92 percent and 44.06 percent to the total equity turnover volume and value respectively.

The consumer goods sector followed with 66.7 million shares worth N2.0 billion in 3,486 deals, while the energy industry recorded a turnover of 63.3 million shares worth N380.2 million in 963deals.

Furthermore, FBN Holdings, GTBank and Zenith Bank accounted for 211.4 million shares worth N3.0 billion in 3,623 deals, contributing 28.59 percent and 35.52 percent to the total equity turnover volume and value respectively.

A total of 18 stocks appreciated during the week, higher than 14 equities in the previous week, while 43 shares depreciated, lower than 47 equities in the previous week, with 102 equities remaining unchanged, same as 102 equities recorded in the previous week.

During the week, the All-Share Index and market capitalisation both appreciated by 0.01 percent to close at 24,829.02 points and N12.952 trillion respectively.

All other indices finished lower with the exception of NSE-Main Board, NSE MERI Value, and NSE Lotus II Indices which appreciated by 0.63 percent, 0.41 percent, and 0.26 percent respectively, while NSE ASeM and NSE consumer goods closed flat.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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