Nigerian Stocks Fall To Lowest Level In 22 Months      

VENTURES AFRICA – Stocks continue their free fall on the Nigerian Stock Exchange (NSE) on Thursday, sliding for the fourth consecutive day to bring the All-Share Index to 31,062.03 basis points compared to 32,203.62 on Wednesday. The index is the lowest since January 2013.
This was due to sell-off in NSE’s most highly capitalised stocks like Nestle, a development occasioned by the withdrawal of foreign investors in recent weeks.
Foreign investors on the run
Apprehension has risen among foreign investors on the future of their investments in the country due to falling global oil prices, falling naira, political uncertainty and insecurity in the country. While the issues may not be long-term, investors have deemed it wiser to sell off some of their investments, at least for now, to ensure they don’t suffer massive losses in the short-term. If foreign investors participation in the NSE was lower, their exit from the bourse would have had lesser effect, but they contribute more than domestic investors.
The level of local investors’ participation on the capital market had fallen to 24.75 percent as at the end of April 2014, from 35.52 percent in the same period last year. However, foreign portfolio investment, accounted for 75.25 percent of total equity transaction in April 2014, up from 64.48 percent in the same period last year.
“Our economy like most global market is sensitive to global development, but if we have a strong participation by domestic investors in our economy, it will help to make our economy much more stable,” Oluwatoyin Sanni Group Managing Director of UBA Capital said recently. “This is very critical for the long-term health and stability of our market”.

Highly priced stocks weakening
Dangote Cement Plc, Mobil Oil Nigeria Plc, SIM Capital Fund, Guinness Plc, Total Plc, Nigerian Breweries Plc, Nestle Plc, Nigerian Energy Sector Fund (NESF) and Skye Shelter Fund had been listed by the NSE as nine of the highly traded stocks, but they all fell badly at the end of trading on Thursday.
Dangote Cement ended the day at N157.99 per share, shedding off N5.51 from Wednesday closing price of N163.50. Mobil lost N7.95 in the same period, closing at N151.05 on Thursday. Guinness ended at Thursday trading at N129.06, from N135.85 the previous day, while Nigerian Breweries lost N8.06 to close at N153.25.
The biggest loss of the day went to Nestle, which lost N40.77 to close at N774.78 from Wednesday closing price of N815.55.
The current situation has made the Nigerian bourse lose all the gains it made in 2013, one of its best years since inception.
Gainers and Losers Start Date 10/12/2014 through End Date 11/12/2014 on the NSE.