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Nigerian Stock Market closes 2015 with decline of 17.4%

By on January 2, 2016

The Nigerian stock market ended 2015 with its second consecutive decline as the Nigerian Stock Exchange (NSE) All-Share Index fell by 17.36 per cent to close at 28,642.25. Similarly, the market capitalisation shed N1.6 trillion to  the year at N9.9 trillion, down from  N11.5trillion in 2014.

Comparatively, the 2015 decline is higher than the 16.1 per cent recorded in 2014. Although the market had an unprecedented bull run in the last two days of  2015,  those  gains were not enough  to offset  the losses recorded in the past months.

At the close of the year, 31 stocks appreciated while  88 stocks declined. Beta Glass Plc  led the gainers for the year, chalking up 92. 4 per cent, followed by Law Union & Rock Insurance Plc and  Forte Oil Plc with 46 per cent  and  44 per cent respectively.

Conversely, Evans Medical Plc led the losers for the year, shedding 78.1 per cent, followed by Tiger Branded Consumer Goods Plc and Oando Plc  with 75.2 per cent and 63.4 per cent in that order.

Analysts at Meristem Securities Limited, a Lagos based investment banking firm, said  the  somber level of market activities may be attributed to several headwinds, some of which crystallized in the previous year (2014), resulting in depressed returns of the index.

“These headwinds include but are not limited to: the decline in crude oil prices, the falling value of the naira as well as the anticipation and subsequent increase of interest rates in the United States,” they said.

According to them, while  remain confident in  their  assessment that value remains in the market, “we note that participation in the Nigerian equities market is likely to remain tempered in the short-term given the impact of foreign investors and their wariness to participate given their perception that the naira is ‘unfairly’ valued.
This, we anticipate will cause a drag to market returns, provided that the apex authority maintains its stoic stance regarding management of the  forex  market.”

A senior stockbroker and Managing Director, Partnership Investment Company Plc, Mr. Victor Ogiemwonyi,   had told THISDAY that the performance of the market in 2015  is probably the worse in years, saying it was a challenge given the slowdown of the economy.

 

[ThisDay]