Stock market investors lost N1.076 trn in July

 …Seplat Petroleum, NB, Dangote Cement top losers

The Nigerian capital market performed poorly in the month of July, as the market fell by a total of N1.076 trillion on the backdrop severe macro economy that signal huge sell-off most especially from the foreign investors.

Specifically, the market capitalisation of the Nigerian Stock Exchange (NSE), which measures the total value of the outstanding shares on the market, dropped by 9.4 per cent to N10.345 trillion as at July 31, 2015 from N11.421 trillion it opened in the month under consideration.

Similarly, the NSE All-share Index (ASI) lost 3,276.56 points or 9.79 per cent, from 33456.83 points to 30,180.27 points, putting the year till date performance at 12.92 per cent decline.  

A report by Lead Securities noted that the capital market in July was in a bearish trend as few companies struggled to gain points at the end of each trading session.  “More company results continue to hit the market with a majority of them reporting reduced profits as economic realities continue to affect their performances negatively,” the company said in a statement.   

After close of trading activities in June, all sectors on the equities market returned negative, as the Banking sector recorded the highest loss of 14.28 per cent followed by Consumer Goods sector that recorded a decline of 12.88 per cent.

NSE Pension, NSE Oil/Gas Index and NSE Insurance Index were all on the decline performance to 11.25 per cent, 7.93 per cent and 6.36 per cent respectively.

In terms of sectors YTD performance, the Consumer Goods sector that has the likes of Nestle Nigeria, Cadbury Nigeria has worst performing YTD return of 12.88 per cent.

Seplat Petroleum Development Company Ltd topped the losers table for the month of July, shedding -11.8per cent to close at N300 from N340.06 per share. Guinness Nigeria Plc followed also losing by 23.2 per cent to close at N125.1, while Nigerian Breweries Plc also declined by 28.98 per cent to close at N121.

Other losers in July include Unilever Nigeria, Dangote Cement Plc that recorded 20.9 per cent and five per cent decline to N36.01 and N171 per share respectively.

The current market mood and stock prices of most companies present good entry opportunities and it is important that investors take advantage of the relatively low prices of stocks especially for companies who are market leaders in various sectors of the market.