Finally breaking the Santa Claus support, equities trading on the floor of The Nigerian Bourse dipped by 84Bpts as it ended today’s trading activities at 25,032.17. The persistence stay of the bear is a clear reflection of increasing panic exits from most manufacturing stocks, especially the highly capitalized ones. For example, Nigerian Breweries is currently receiving heavy blow as its full year financials are expected in the market anytime from now.
Aside the NSE-Oil & Gas that added 84Bpts, other observed market indices treaded the lead index path. Week to Date, the market is down by 121Bpts while the total point lost in February has increased to 386Bpts.
Value loss by the market capitalization of the listed equities during today’s trading activities was N74.411 billion same as 84Bpts below the opening value. Meanwhile, trading activities for the day produced 15 advancers and 14 lagers. NSEASI Year to Date loss is -6.86% while the Market Capitalization Year to Date loss stood at –N583.763 billion same as 6.31% below the year’s opening value.
In our opinion, as long as the economy situation remained gloomy, negative sentiments will persist, and investments will be eroded.
Further increasing investors’ panic is the January inflation figure expected to be released during the week. The unstable increase of the nation’s translation rate against the USD is another discouraging factor to both local and international investors.
As noted in our previous reports, cautiously playing service companies remained the only safe investment strategy at the moment.