IN the month of October, equities trading at The Nigerian Exchange Limited (NGX) ended bearish as the All-Share-Index (ASI) decreased by 0.92 percent to close the month at 97,651.23 basis points.

The lull was recorded in the month despite the new listings that pushed the equities market’s value higher by N2.53 trillion.

Specifically, the All-Share Index (ASI) opened the review month at 98,558.79 basis points but closed at 97,651.23 basis points, having shed 0.92 percent or 907.56 basis points.

Market capitalisation, however, added N2.536 trillion as the month ended at N59.171 trillion as against an opening mark of N56.635 trillion.

In the month of October, the dip recorded in the equities market is attributable to sell-offs in mostly industrial and consumer goods stocks despite increased bargains in oil & gas, banking, and insurance stocks.

Although performance of sectoral indexes was mixed as analysis indicated the NGX Industrial goods indexes impacted the market the most during the month, performing worse than the general market.

Basically, NGX Industrial Index decreased by 9.31 percent in the review trading month, while NGX Consumer Goods Index decreased by 0.75 percent.

The Industrial index opened the month at 3,807.26 basis points but by the end of the month, it has declined by 9.31 percent or 355.34 percent to 3,451.92 basis point.

Specifically, selloffs and profit-taking in BUA Cement weighed heavily on the Industrial index, as this high capitalized stock depreciated by 11.09 percent, leaving its share price at N97.80 Kobo as against the month opening of N110 per share.

Market breadth for the month under review was positive with the advancers outnumbering decliners in the ratio of 54:44 to halt the previous month rebound.

In the 22 trading sessions of October, the index recorded losses in 12 sessions and gains in 10 trading days, reducing year-to-date gain to 30.60 percent.

Ambrose Omordion, Chief Research Officer at Investdata Consulting Ltd noted that the mixed trend by the benchmark NGX All-Share index and the positive corporate earnings of listed companies released so far shows a disconnection and slow growth of the economy.

“This is a reflection of monetary policy stance of CBN and mismatched economic reforms policies of the government in the midst of high interest rate and insecurity. However, for these high rates are threatening the nation economy expansion, it is time for government to revisit its various policies needed to boost the economy, while ensuring coordination with the monetary authorities so as to check the wanton incidences of policies summersaults that have prevailed for years,” he said.

He added that the impact of this was worsened by the increased electricity tariff and pump price of petrol, further pressuring the cost of goods and services when added to the high cost of other production variables that have almost crippled the manufacturing sector as reflected in the mixed earnings of companies in the real sector.

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