Equity trader, Jamiu Mohammed speaking on Monday’s trading activities at the Nigerian Stock Exchange said the market lost 0.31% and the index that measured performance of the general market closed around 52, 348 points.
He stated that the value traded in the day was around 220 million units of shares worth about 3.248 million.
He added that there 20 gainers and 22 loses
Speaking further, Mr Mohammed said activities in the market was a bit low
which may not be unconnected with the fact that there was improved activity that was had last week.
He reiterated that economic activities are expected to be slow looking at the first quarter of the year. But the market is open for investors.
He further added that in a sound market, we are supposed to have a Speculator and also we’re supposed to have an investor.
He explained that for a market to be a sound a market, investors are supposed to be the one to control the market but when speculators are the ones ruling the market, there will be problems as the market will be run and judged by sentiments in the sense that those fundamentals, the economics fundamentals and Company fundamentals that you need to
look at that is supposed to drive prices in the market, will not be there.
“What this means is that the prices will continued to be suppressed and stocks will be undervalued.
“We need the speculators but we don’t want a situation where the market will be dominated by them. We want a market that is being dominated by investors so that these investors will always look at these companies that have fundamentals but in their numbers.
Investors at the Nigerian Exchange (NGX) Limited are already putting an eye on Thomas Wyatt as its share price increased by 52.58 per cent last week.
Thomas Wyatt shares ended the trading week at N1.48 per unit, in contrast to the 97 Kobo per unit it finished in the preceding week. Its value at N1.48 is its 52-week high.
It has been keenly observed that Thomas Wyatt has maintained an upward trajectory since the NGX Regulation lifted the embargo it placed on the company in October after it filed its results. The details of its earnings may have caught the attention of value investors, who believe the stock should be trading higher than its price.
Last week, it topped the gainers’ chart of 51 members, higher than 38 members in the previous week, with Chams following with a 17.39 per cent appreciation to close at 27 Kobo. ABC Transport rose by 16.00 per cent to 29 Kobo, Livestock Feeds gained 15.04 per cent to N1.30, and Mutual Benefits increased by 14.29 per cent to 32 Kobo.
During the week, 27 stocks were on the losers’ log compared with 17 stocks in the preceding week, as Chellarams suffered the heaviest loss after it went down by 33.66 per cent to N1.34. Royal Exchange fell by 10.78 per cent to 91 Kobo, Abbey Mortgage Bank declined by 10.00 per cent to N1.53, NEM Insurance depreciated by 10.00 per cent to N4.05, and Cornerstone Insurance depleted by 8.33 per cent to 55 Kobo.
In the week, a total of 79 equities remained unchanged, in contrast to the 102 equities recorded in the earlier trading week.
An analysis of the performance of the exchange showed that the All-Share Index (ASI) and the market capitalisation appreciated by 2.52 per cent each to 52,512.48 points and N28.602 trillion, respectively.
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