Stock market lower by N817bn in 2016

By Kayode Ogunwale

 

Despite economy recession that rocked Africa most populous country during the year 2016, the Nigerian stock market recorded negative trend of N817 billion better than what the market loss in 2015.

The general market capitalization which comprises Equities, Bonds and Exchange Traded Products available for trading on the bourse opened the year 2016 with N17.003 trillion and end it with N16.186 trillion.

In the same vein, the market capitalization of all listed equities on the bourse depreciated by N604 billion from N9.851 trillion it opened the year 2016 to close at N9.247 trillion, this represented 6.13 per cent dropped, lower than 14.17 per cent loss recorded in 2015.

Consequently, the NSE All Share Index which is the barometer of the market movement dropped 1,767.63 basis points in 2016 as against 6,014.90 basis points recorded in 2015.

In percentage term, All Share Index dropped 6.17 per cent in 2016 compared to 17.37 per cent it loss in 2015.

The market index opened year 2016 with 28,642.25 basis points to close at 26,874.62 points.

Also, the Bond segment of the bourse depreciated by N215 billion or 3.01 per cent during the year 206 from N7.140 trillion to end the year with N6.925 trillion.

Meanwhile, Exchange Traded Fund (ETF) which is the third products available for trading on the exchange close stronger with N780 million, translating to 19.41 per cent. The ETF opened the year 2016 with N4.019 billion and close at N4.799 billion.

During the year under review, three sectors appreciated while eight sectors declined.

The NSE Lotus Islamic Index that tracks Islamic complied stocks recorded the highest gain of 7.87 per cent during the year, from 1,998.85 points to 1,841.59 basis points. The NSE Premium Board that comprises Dangote Cement Plc, Zenith Bank Plc and FBN Holdings follow with 6.98 per cent surged from 1,584.92 points to 1,695.51 points, while NSE Banking Index recorded 2.17 per cent gain, from 268.49 basis points to 274.32 points.

On the other hand, NSE Industrial Index recorded the highest loss of 571.37 points, represented 26.32 per cent from 2,166.70 points to end 2016 with 1,595.33 points.

However, NSE Oil & Gas Index, Insurance Index and NSE Main Board Index dropped 12.31 per cent, 11.44 per cent and 10.02 per cent from 356.56 points, 142.61 points and 1,337.85 points they opened to end the year with 312.68 points, 126.29 points and 1,203.79 points respectively. The NSE 30 Index that tracts 30 most capitalized stocks depreciated by 92.47 points or 7.18 per cent from 1,287.67 points to close at 1,195.20 points. NSE Consumer Goods Index dropped by 33.54 points or 4.49 per cent to end the year 2016 with 712.65 points from 646.19 points it opened the year, Alternative Securities Market (ASeM) depreciated by 18.96 point represented 1.57 per cent from 1,208.65 points to close at 1,189.69 points, while the NSE Pension Index dropped 5.12 points or 0.63 per cent to end the year with 810.04 basis points.