In February, investors in the Nigerian equity market suffered significant losses amounting to approximately N1.55 trillion due to the allure of high yields in the fixed-income market.
At the start of February, the Nigerian Exchange commenced with the All-Share Index and market capitalization at 102,802.25 and N56.26 trillion, respectively. However, by month-end, these figures declined to 99,980.30 and N54.71 trillion, marking a 2.75 per cent decrease.
David Adonri, a stockbroker and Vice Chairman of Highcap Securities, noted that while the pullback in February was expected, further corrections are anticipated as full-year results of listed companies are published. Despite the overall market decline, some companies experienced gains during the period. Notable gainers included Juli Plc, PZ Cussons, and Sterling Financial Holdings, which recorded increases of 60.26 per cent, 27.36 per cent, and 14.94 per cent, respectively.
Conversely, several companies witnessed declines in their stock prices. MTN Nigeria, Sunu Assurances, and Nestle Nigeria were among the top decliners, experiencing losses of 18.91 per cent, 18.18 per cent, and 18.18 per cent, respectively.Analysts foresee a potential market upturn in the coming week.
Source: PUNCH