Stock market loses N628bn in Q1 2021

The nation’s equity market has recorded poor performance in the first quarter of 2021 as the Nigerian Stock Exchange (NSE) All Share Index closed in negative note, shedding 1225.59 basis point.

The NSE ASI which opened year at 40270.72 points , depreciated by 3.04 per cent to closed the quarter at 39045.13 points.

Also market Capitalisation of listed equities dipped by N628 billion within the period under review to N20.428 trillion from N21.056 trillion it closed at end of December 2020.

Capital market operators attributed the poor performance of the market on insecurity problem as well as increased yields in the fixed income securities

They explained that the increase in interest rate in the debt securities by Central Bank of Nigeria have attracted more investors to play in the market than equity market.

Operators said that tight liquidity in the system and increase in unemployment resulting from Covid 19 pandemic has pushed some parents to sell their shares at a give away price to meet up with timeframe for the payment of school fees.

They also expressed optimism that most of foreign investors that invested in capitalised equities will likely start playing the market again to reinvest their return on investment immediately companies start paying dividend by end of March, 2021.

Meanwhile at the close of trading at the NSE yesterday the Market Capitalisation of listed equities declined by N116 billion or 0.56 per cent to N20.0428 trillion from N20.544 trillion reported on Tuesday.

The NSE All Share Index also depreciated by 221.98 basis points to 39045.13 points from 39269.11 points reported the previous day.

Investors traded 347.173 million shares valued at N2.803 billion in 3990 deals against 336.125 million shares cost N3.268 billion exchanged hands the previous day in 4394 deals.

A review of the investment showed that Linkage Assurance led gainers table during the day in percentage terms, appreciating by 10 per cent or N0.06 kobo to close at N0.66 kobo, Prestige Insurance followed with a gain of 9.76 per cent or N0.04 kobo to close at N0.45 kobo, Meyer Paint added 9.76 per cent or N0.04 kobo to close at N0.45 kobo, NEM Insurance gained 5.52 per cent or N0.20 kobo to close at N2.30 kobo, Guinness Nigeria PLC increased by 7.28 per cent or N2.30 kobo to close at N33.90 kobo.

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