Corporate earnings: Investor sentiment causes N109bn loss in 4 days

Posted by: Nkiruka Nnor
Investors in the stock market lost a total of N109 billion over four trading days this week, despite the release of the third quarter of 2018, the third quarter of 2008, and nine-month financial statements of the companies quoted.

Stocks

As a rule, the issuance of reports on the profits and losses of companies generates greater activity in the market, which leads to a positive return for investors.

But this week's activity had a negative impact on analysts' expectations regarding positive sentiment in relation to earnings, which were largely positive.

Last week, investment bankers came to a consensus view that the market would have a positive effect this week, but yesterday, at the close of trading, the bears had an advantage.

The market began with a positive note on Monday with a 0.37% increase in the All Share, ASI index. It went up by 0.7 percent on Tuesday, but returned to the negative region on Wednesday after a strong sell-off of Dangote Cement Plc shares, which fell by 6.76 percent, which led to a decrease of 2.37 percent in ASI during the day.

The market was again positive yesterday with an increase of 0.04 percent, but this was not enough to get rid of the negative impact of the previous day’s activities.

Consequently, ASI dropped to 32,545.06 points from 32,841.69 points, while the market capitalization of shares fell by N109 billion to N11.881 trillion. With N11.990 trillion, which means a decrease of 0.90%, respectively.

This was mainly due to the massive losses in the oil and gas and industrial goods sectors, which depreciated by 3.5 percent and 1.05 percent, respectively.

Royal Exchange generates N12.8 GWP

Thus, losses by months, m / d and by year, y / d, decreased to -0.68 percent and -14.9 percent, respectively.

Activities in different sectors were mixed, since two of the five sectoral indices closed negatively, while others closed positively.

While consumer goods and the oil and gas sector recorded losses of 3.5% and 1.05%, industrial goods, insurance and banking sectors were estimated at 6.53%, 0.62% and 0.06%, respectively.

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