01 July 2015, Lagos – The Nigerian Stock Exchange (NSE) All-Share Index, which measures the aggregate growth of the stock market declined by 3.46 per cent in the first half of the year as investors maintained cautious trading.
The ASI, which opened the year at 34,657.15 closed at 33,456.83 on Tuesday. However, the market capitalisation which is the worth of equities, recorded a lower decline of 0.5 per cent or N58 billion. The market capitalisation fell from N11.478 trillion at the beginning of the year to close at N11.42 trillion yesterday.
Given the bearish trend with which the market opened in, market analysts said the decline of 3.4 per cent is still commendable. After recording a decline 14.7 per cent in January alone on negative macro economic headwinds. However, the market surged 20 per cent between March 20 and April 13 following the euphoria that greeted the successful general elections.
However, the market performed sideways since the inauguration of the new government as investors continue to await President Muhammadu Buhari to make necessary appointments and unveil economic direction of his administration.
The market remained bearish since last week but recovered in the last two days of June as some investors took position ahead of the release of half year corporate results of quoted companies.
As result, the market appreciated by 1.2 per cent on Monday. The positive performance was sustained yesterday, rising by 0.62 per cent to bring half reduce the decline to 3.46 per cent. The market capitalisation added N70.88 billion alone.
A further analysis of the market performance yesterday showed that the NSE Industrial Goods Index was the sole gainer with 1.91 per cent. The NSE Insurance Index recorded the worst performance with a 1.35 per cent decline. The NSE Oil/Gas, NSE Banking, and NSE Consumer Goods indices fell by 0.79 per cent, 0.51 per cent and 0.28 respectively.
– This Day