The second half of the year which began in July has coincided with Nigeria’s stock market already losing value for many reasons. As Nigeria’s presidential elections draw near, many investors have decided to sit on the sidelines and observe the political climate in the country. It has been reported that the Nigerian stock market lost N302 billion (almost $1 billion) in the first two weeks of July.
Analysts say this is due to many reasons, including cautious trading and the profit taking that ensued in the first half of the year. This came after the Nigerian Stock market was pronounced the 3rd best performing capital market in the world in 2017, and the best stock exchange website in Africa. The market capitalization has fallen from N13.866 trillion to N13.546 trillion so far in July, declining more than 2 percent.
The West African Investment banking firm, Afrinvest, says five factors will lead the market drive in the second half of the year; “new listings, budget implementation, elections uncertainties, sustained liquidity in forex exchange(FX), corporate earnings.”
Below is the Ventures Africa Weekly Economic Index, for the week ending 13th of July 2018. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data revealed by the Nigerian Stock Exchange (NSE), as of 13th July 2018, showed that the All-Share Index depreciated by 0.62 percent from the previous week ending 6th July 2018. Market capitalization at the close of trading during the week under review was N13.546 trillion, a 0.62 percent decrease from N13.630 trillion recorded the previous week. The All Share-Index for the week under review closed at 37,392.77.
It is important to note all other indices for NSE’s Weekly Index finished the week lower except for NSE Oil/Gas and NSE Lotus II.
Top five price gainers and decliners in the week under review:
Top five price gainers
Custodian Investment Plc.
C & I Leasing Plc.
Forte Oil Plc.
Equity Assurance Plc.
Top five price decliners
Mutual Benefits Assurance Plc.
DN Tyre & Rubber Plc.
Multiverse Mining and Exploration Plc.
Sovereign Trust Insurance Plc.
How did the Naira fare?
For the first time in almost two months, the Naira’s value against the dollar ended at N362/$ for the week under review ending 13th July 2018. It was sold at N359/$ on Friday 6th of July 2018, meaning it lost its value and dropped below the 359/360/361 value that has been the official exchange rate for almost two months. The last time the Naira traded at 362 against the Dollar was on the 28th of May 2018.
How did the price of oil fare?
Brent Oil prices began the week at almost $77 per barrel, but by the end of the week, it had taken a dip by 13th of July to $73.5 per barrel. This dip in prices was due to the reopening of Libyan ports last week, speculations on a supply increase from Russia after the coming Trump-Putin meeting in Finland this week.