Airtel Africa Plc, Beta Glass Plc, and NEM Insurance Plc recorded a collective lack of N2.3 trillion at the finish of this week’s buying and selling to rank as the top three losers. This adopted sustained promote stress witnessed on the shares.
Checks by Nairametrics confirmed that the shares of Airtel Africa Plc, considered one of the main telecommunications firms quoted on the NGX, led the losers’ chart after dropping by 27.10% to N1,312 per share from N1,800 per share.
Also, the shares of Beta Glass Plc misplaced 9.98% to shut at N41.50 per share, from N46.10 at the opening of the buying and selling week.
In the similar vein, the shares of NEM Insurance Plc shed 9.98% to shut buying and selling at N4.42 per share from N4.91.
The NGX All-Share Index and Market Capitalization depreciated by 6.67% to shut the week at 44,396.73 and N24.182 trillion respectively.
Similarly, all different indices completed the week low aside from NGX CG, NGX Banking, NGX Pension, NGX AFR Bank, NGX AFR Div Yield, NGX MERI Growth, NGX MERI Value, and NGX Industrial which appreciated by 0.17%, 0.15%, 0.58%, 2.10%, 2.45%, 1.22%, 3.12%, and three.22% respectively.
Meanwhile, the NGX ASeM, NGX Growth, and NGX Sovereign Bond indices closed flat.
Thirty-three equities appreciated throughout the week, larger than twenty-five equities in the earlier week. Twenty-nine equities depreciated at a worth larger than twenty-four in the earlier week, whereas ninety-five equities remained unchanged, decrease than 100 and eight equities recorded in the earlier week.
A more in-depth have a look at the share motion revealed that Airtel Africa fell for 3 consecutive days throughout the week to shut its final buying and selling day (Friday, October 21, 2022) with a share worth of N1,312.20 and N4.931 trillion in market capitalization.
The inventory had begun the week with a share worth of N1,800 N6.764 trillion in market capitalization. Unfortunately, it ended the week’s buying and selling session with a cumulative lack of N1.833 trillion in market capitalization.
Beta Glass Plc closed the final buying and selling day at a share worth of N41.50 and with a market capitalisation of N24.898 billion as in opposition to a share worth of N46.10 and market capitalisation of N27.658 billion throughout the previous week, thus dropping N2.760 billion or 9.98%.
NEM Insurance Plc additionally closed final buying and selling day at a share worth of N4.42 and market capitalization of N22.172 billion as in opposition to N4.91 per share and N24.630 billion in market capitalization, therefore, dropping N2.458 billion or 9.98%
The build-up to the 2023 common election and hike in rates of interest has began impacting the market negatively. Foreign and home traders are exiting the market, which is sparking up a liquidity disaster.
Market specialists consider that home Investors’ sentiment is normally weak as they search to scale back their market publicity when elections draw nearer. The depth of the impression is normally a operate of the diploma of political pressure and uncertainty generated by political actions.
What a capital market knowledgeable mentioned
A former commissioner of finance in Imo State and professor of capital market at the Nasarawa State University, Uche Uwaleke, predicted that there will likely be portfolio rebalancing away from equities to fixed-income securities. He added that this era has been related to the exit of overseas traders. He mentioned:
- “Domestic Investors’ sentiment is normally weak as they search to scale back their market publicity when elections draw nearer. The depth of the impression is normally a operate of the diploma of political pressure and uncertainty generated by political actions
- “While the ASI depreciated in September for all penultimate election years, it appreciated in January for all election years except 2015. The outlier, January 2015, was the election year that ushered in the present administration, characterized by high tension and uncertainty, compounded by the fall in international crude oil prices and the rumoured break-up prediction of Nigeria in 2015 by the United States National Intelligence Council.”
According to the professor, the bearish run skilled in the inventory market in H2 of 2014 (largely on account of the pressure) lingered into January 2015.
- “To identify mispriced stocks, the application of ‘Tobin-Q’ or ‘Kaldor’s V’ and Price/Earnings ratios is advised. Ultimately, the best strategy to shield the headwinds is to stay with securities that have solid fundamentals as well as ensure a well-diversified portfolio of investments, particularly during electioneering periods,” he suggested.
