After an impressive performance recorded in equity trading activities early this year, activities on the Nigerian Stock Exchange saw lower performance for the most part of August and the first week in September.

Thus, the NSE Year-to-Date gain closed on Friday at 29.65 per cent, representing a decline from a peak of 36 per cent recorded in the second quarter of this year.

Despite the fact that indices closed positive at the end of trading last week, analysts say the market indicators have shown a lot of sell-pressure as a result of the half-year performance turned in by major companies.

They add that the market needs more positive news in the next few weeks to return activities to a more positive terrain.

At the close of Friday’s trading, the market capitalisation of the listed equities lost N23bn or 0.2 per cent from N11.614tn on Thursday, to close at N11.591tn.

The NSE All-Share Index was also down by 72.35 basis points or 0.2 per cent to 36,403.95 points, down from 36,472.30 points recorded the previous day.

An analysis of the weekly trading, however, showed a marginal appreciation as the NSE All-Share Index rose by 0.2 per cent or 66.80 basis points to 36,403.95 points compared to 36,337.15 points on Monday.

Also, the market capitalisation of the listed shares closed at N11.591tn, representing a marginal increase of 0.6 per cent or N66bn compared to N11.524tn recorded at the beginning of the week.

The NSE-30 Index, which measures the performance of the top 30 equities, was up by 0.1 per cent or 1.6 basis points from 1,696.10 points on Monday, to close at 1,697.70 points.

The Consumer Goods Index and the Banking Index lost 0.7 per cent and 0.9 per cent down by 0.7 to close at 1,017.77 basis points and 389.45 points respectively.

The Chief Executive Officer, Lambeth Trust and Investment Limited, Mr. David Adonri, said that the loss recorded last month was as a result of tightening measures by the regulators.

He said, “The equities market lost significant value in August. It was driven down by external factors relating to global and domestic monetary tightening measures.

“The market makers did a lot during the month to stabilise the market otherwise, the situation could have been worse than we witnessed.”

He, however, explained that with the release of the third quarter results, activities might pick up in the market.

He added that it was usual for investors to show an increased interest in the market in the period just after results have been released, adding that there might be increased activities after the release of Q3 results.

Source: Punch 9by Udeme Ekwere)