Capitalization of the equity sector on the Nigerian Stock Exchange (NSE) plunged at the end of last week’s transaction, causing investors to lose a whooping sum of $667 million (N239 billion). The market dropped from 42 billion (N14.992 trillion) to 41.160 billion (N14.753 trillion), week on week ending Thursday.
The plunge, according to analysts, can be attributed to the Easter holiday celebrations as well as sell-offs in major highly capitalized stocks. Listed equities on the All Share Index declined by 1.6 percent from 41,504.51 to 40,841.14, during the holidays.
Further analysis showed that investors recorded a total turnover of 1.765 billion in shares valued at N26.562 in contrast to a total of 2.328 billion shares valued at N28.927 billion that was exchanged. Although things are gloomy for investors on the chart, stock analysts predict a positive outlook on the market as firms record impressive earnings and expectations in 2018.
Codros Capital Limited, a leading financial services company located in Lagos, Nigeria is one of such firms with an optimistic outlook. As reported in The Guardian Nigeria Newspaper, the company maintains a “positive outlook on the market in the near term following the release of strong FY 2017 earnings and expectation of impressive Q1 2018 results.”
On the share index, the financial services industry, which is measured by volume, contributed 83.18 per cent and 70.43 per cent to the total equity turnover volume and value respectively, leading the activity chart with 1.468 billion shares valued at N18.707 billion traded in 12,850 deals.
Following closely is the conglomerates industry with 127.882 million shares worth $1.73 million (N623.871 million) in 971 deals. Consumer goods ranked third with a turnover of 69.868 million shares worth N6.189 billion ($17.2 million) in 2,930deals.