By Odunewu Segun
The Nigerian stock market performance in 2015 has been described as the worst in years following the decline in All-Share index by 17.36 per cent at the end of the year.
A senior stockbroker and managing Director, Partnership Investment Company Plc, Victor Ogiemwonyi stated this recently.
It would be the second consecutive decline for the stock market, closing at 28,642.25 in the last week of 2015.
In comparison, the Nigerian Stock market capitalization shed N1.6 trillion in 2015 at N9.9 trillion as against N11.5trillion in 2014. 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, the 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 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.”
One the analysts said 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 given their perception that the naira is ‘unfairly’ valued”
This according to the analysts will cause a drag to market returns, provided that the apex authority maintains its stoic stance regarding management of the forex market.