Stock investors lose N213 billion in March amid uncertainty
Uncertainty in the global economy coupled with insecurity in the country and other macroeconomic challenges have continued to take a toll on the capital market as investors’ wealth depreciated by N213 billion in March.
Specifically, the market capitalisation of listed equities, which opened the month of March at N25, 524 trillion, depreciated by N213 trillion to close at N25,311 trillion. The all-share index (ASI) equally declined by 395.21 points or 0.8 per cent from 47,360.79 to 46,965.48 points.
Market capitalisation value depreciated, despite impressive earnings and dividend announcements from listed companies. The seemingly improved performance and buying interest in financial services stocks, consumer and industrial goods of the NSE failed to push the market indices as sell-offs in large company shares dragged the key performance indices down.
Operators said that given the increasing level of insecurity, uncertainties surrounding the impact of Russia’s invasion of Ukraine, fuel scarcity, high cost of diesel, electric power collapse, government has to adopt new measures to address the rising insecurity in the country.
Vice President of Highcap Securities Limited, David Adonri said the dismal performance of equities in March 2022 is not surprising, owing to uncertainties that surround both the global and domestic economy.
“First, it is in tune with the usual trend when the market slows down in March after reacting to full-year corporate disclosures. The equities market was also faced with daunting downside pressures that arose from currency depreciation and uncertainties surrounding the impact of Russia’s invasion of Ukraine.
“The negative impact of US Feds rate hike programme, fuel scarcity, high cost of diesel, electric power collapse and intensified terrorist activities, combined to depress investor’s confidence in equities market. Activities shifted more to the debt market in March.”
Data obtained from the Nigerian Exchange Limited (NGX), showed that investors are set to earn over N780 billion for the year 2021.
So far, 16 companies across seven sectors – consumer goods, financial services, industrial goods, oil and gas, services, healthcare and IT have paid out a total of N782.19 billion as the final dividend payout for the year ended December 31, 2021.
For the period under review, under the consumer goods sector, Vitafoam paid N1.876 billion, representing N1.50 per share. Dangote Sugar Refinery proposed a final dividend of N12.147 or N1 per share, while Nestle Nigeria declared a N20.213 billion dividend or N25.50 per share.
NASCON Allied Industries and Nigerian Breweries set to pay a dividend of N1.06 billion and N9.691 billion, representing 40 kobo per share and N1.20 per share, respectively.
Under the financial services sector, shareholders of United Capital, African Prudential, Guaranty Trust Holding Company (GTCO), Zenith Bank and United Bank for Africa (UBA) will receive a total dividend of N9 billion, N1 billion, N79.464 billion, N87.91 and N27.36 billion, representing N1.5 per share, 50 kobo per share, N2.7 per cent, N2.8 per cent and 80 kobo per share in that order.
Also, Dangote Cement and Lafarge Africa listed under the industrial goods sector proposed a final dividend of N340.82 billion, representing N20 per share and N16.108 billion or N1 respectively.
Seplat Energy to pay dividend of 0.426 cent per cent, making a total payout of N250.677 million in naira, while Transcorp Hotels, listed under the services sector declared a dividend of N716.98 million or seven kobo (N0.07) per.
Meanwhile, market breadth closed negative at the end of transactions yesterday, as 30 stocks declined, while 14 constituted the losers’ chart. Meyer Plc recorded the highest price gain of 10 per cent to close at 66 kobo, per share. AXA Mansard Insurance followed with a gain 9.72 per cent to close at N2.37, while FBNH gained 6.90 per cent to close at N12.40 kobo.
Courteville Business Solutions rose by 5.66 per cent to close at 56 kobo while Okomu Oil appreciated by 4.32 per cent to close at N149.70 kobo. On the other hand, Northern Nigeria Flour Mills (NNFM) led the losers’ chart by 10 per cent to close at N9 per share. Neimeth International Pharmaceuticals followed with a decline of 9.55 per cent to close at N1.42, while Berger Paints depreciated by 9.33 per cent to close at N6.80 kobo.
R.T. Briscoe Nigeria declined by 9.23 per cent to close at 59 kobo, while Nigerian Breweries depreciated by 9.1 per cent to close at N40.45 kobo.
The total volume of trades increased 27.3 per cent to 256.02 million units, valued at N3.66 billion, and exchanged in 4,227 deals. Transactions in the shares of Fidelity Bank topped the activity chart with 77.35 million shares valued at N242.27 million.
UAC of Nigeria (UACN) followed with 16.96 million shares worth N198.7 million, while Chams traded 15.45 million shares valued at N3.22 million.
Zenith Bank traded 15.25 million shares valued at N343.36 million, while Access Holdings transacted 15.23 million shares worth N149.85 million.