Investors Lose N124.14b To Sell Pressure In May | Independent Newspapers Limited
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Investors Lose N124.14b To Sell Pressure In May

Posted: Jun 1, 2015 at 12:00 am   /   by   /   comments (0)

By Bamidele Ogunwusi Lagos

Trading on the Nigerian Stock Exchange (NSE) closed negative as the month of May closed Thursday, ahead of the public holiday declared by the Federal Government for Friday’s inauguration ceremony of the Mohammadu Buhari administration, which ended the 16-years rule of the Peoples Democratic Party (PDP) governments.

Market capitalisation of all listed equities on the Main Board and the Alternative Securities Market (ASeM) in May, dropped by ?128.14 billion or 1.09 per cent as 46 stocks led by Unity Bank suffered decline, as against 47 on the gainers’ side, with Vono Products taking the lead. The All Share Index suffered a 1.15 per cent decline for the period.

The negative returns in May, despite the earnings season, analysts believe, followed selling pressure despite an appreciable amount of interest observed in a handful of small and mid-cap stocks.

The May decline was unlike the situation in April, when the euphoria that greeted the successful elections, beginning with the Presidential poll on March 28, 2015, buoyed investors’ confidence, leading to positive returns in April, what according to analysts at Lagos-based investment banking group, Dunn Loren Merrifield, was despite relentless sell-off across board at the latter part of the month. In April,  the All Share Index gained 9.31 per cent, just as capitalisation jumped by ?1.07trillion or 9.98 per cent.

The month’s biggest decliner was Nestle Nigeria, which lost N100 per share; followed by Seplat Petroleum Development Company, which within the month was restrained from going ahead with the purchase of three prime Nigerian oil wells from Chevron Corporations by the Supreme Court. Seplat shed N39; ahead of Glaxo Smithkline Consumer, N11; while competitors- Guinness and Nigerian Breweries lost N6.91 and N4.50 each respectively.