The week ended January 31, 2020, was not a fruitful one for some investors in the Nigerian Stock Exchange, as the market delved below N15 trillion when investors lost N403.02 billion.
The all-share index also dipped by 2.65% from 29,628.84 to close at 28,843.53 index points. Experts attributed the development to the sell-offs witnessed in MTN Nigeria Communications Plc, Guaranty Trust Bank Plc, and Access Bank Plc.
The summary of the stock market performance for the week showed that no stock recorded positive growth last week. There were only decliners and retainers.
Lafarge Africa lost the most with a 12.86% decline to close the week at N15.25 followed by First Bank Holdings, which dipped 10.27% to close at N6.55. UBA recorded 6.43% loss to close at N8 with Zenith Bank closing at N20.85 indicating 5% loss while MTN rounded off the list with 4.32% loss to close at N119.6.
Despite the negative performance of the stock market in the week, some company stocks recorded a slight increase in the value of their stocks.
Linkage Assurance gained the most on the bourse with an 18.75% increase to close at N0.57. Neimeth Pharmaceuticals followed with 17.02% gain to close at N0.55 from an initial N0.47. Vitafoam Nigeria also recorded a 10% gain to close at N5.5 as NPF Microfinance Bank grew by 9.73%, from N1.13 to N1.24 while Cornerstone Insurance rounded off the list with 9.26% gain to close at N0.59.
A significant proportion of the listed companies recorded a decline in the value of their stocks. Eterna plc dipped 23.81% to close at N2.4. Honeywell Flour Mill closed at N0.97 from N1.18, reduced by 17.8%, ABC Transport also dipped 17.07% to close at N0.34. UACN lost 15.64% to close at N8.9 while Unilever Nigeria rounded off the list with 14.53% loss to close at N15 from N17.55.
Last year, it was expected that the decision of the Central Bank of Nigeria to stop individuals and Pension Fund Administrators from investing in OMO bills will push the investing public to the local bourse in 2020 in turn affecting the market performance positively.
However, the turn of events could be attributed to the uncertainty surrounding stock performance and the volatile nature of the market hereby influencing the decision for profit-taking.