Stocks halt three-day gaining steak on high speculative trading

January 2015- the worst bearish start in six years

THE equities market closed yesterday on a negative note, as Nigerian Stock Exchange [NSE] All Share Index [ASI] depreciated by 1.36 per cent to close at 30,200.97 basis points, compared with the two per cent appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at 12.86 percent.

  Market breadth closed negative as Champion led 19 gainers against 32 losers topped by  Ransexpr at the end of yesterday’s session- an unimproved performance when compared with previous outlook. 

  Market turnover closed positive as volume moved northwards by 2.47 per cent against 17.45 per cent uptick recorded in the previous session. Access, ETI and First bank were the most active to boost market turnover. ETI and Access topped market value list.

  Volume shockers included Custodyns which led  the list of active stocks that recorded impressive volume spike at the end of yesterday’s session.

  Meanwhile, January 2015 has been regarded as the worst bearish start in the last six years.

  Market net worth depleted by N1.63trillion in the month of January 2015. This has left market breadth in a battered shape of 18 gainers against 69 losers as at the end of month.

   The big caps and blue chips were the worst hit in the month of January as majority of stocks in this category were and still trading at their historical lows. Also, the liquidity level in the market declined further during the month as analysis revealed liquidity level to close at 8.44 per cent as against 8.56 per cent recorded in January 2014.

  Going forward, according to proshare analysts,  gradual growth in value investing, driven by low valuations across board amid falling sell-off pressure. 

  In addition, said the analysts, if oil market can sustain the recent spike in the oil price,  this may rekindle the investors’ sentiments as the uptick in oil price would have rub-off effect on the fundamentals of the Nigerian economy despite the post-election tension.

   Nigerian stock market closed January 2015 battered and depressed in an oversold region as ASI plunged by -14.70 per cent on the back of active sell-off tendency, driven majorly by growing uncertainties- emanated from falling economic fundamentals and devaluation of Naira.

   Also, the tension in socio-political space towards general election cannot be isolated from the sustained downtrend pattern as the cautious trading dominated the month of January.

  Analysis revealed that market net worth depleted by N1.63trillion in the month of January 2015 in addition to N1.75trillion loss recorded in year 2015 as both foreign and local investors dumped shares consistently. This has put the total loss at N3.38trillion in 13months.

   The big Caps and blue chips were the worst hit in the month January as majority of stocks in this category were and still trading at their historical lows due to sustained sell-off pressure. This has left market breadth in a battered shape of 18gainers against 69 losers.

  On the other hand, medium and low capped stocks retained value on the back of improved bargain appetite observed towards these stocks in the month. Analysis revealed top 10 performer list was dominated by small capped stocks.

  Also, analysis revealed that the liquidity level in the market declined further during the month as analysis revealed liquidity level to close at 8.44 per cent as against 8.56 per cent recorded in January 2014.

   Furthermore, an extensive analysis revealed January 2015 as worst January in the last six years, dipping by 14.70 per cent against -1.83 per cent loss recorded in January 2014. In a similar fashion, the month recorded the lowest liquidity posture.