RateCaptain
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
Subscribe
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
RateCaptain
No Result
View All Result
Home News

Share prices hit 10-year low amid uncertainties, weak economy, others

Rate Captain by Rate Captain
August 20, 2019
in News
Reading Time: 3 mins read
A A
0
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

Prevailing economic downturn has continued to trigger persistent fall in share prices of listed firms, as share prices of most bluechip companies quoted on the Nigerian Stock Exchange (NSE), hit 10-year low under the current financial year.

Among these stocks are Flourmill of Nigeria, UACN, Guinness, Julius Berger, Honeywell Flour, UACN Property Development Company, GlaxoSmithKline, PZ Cussons and a host of many others, which are currently trading at levels last seen at almost a decade. Investors that have held the stocks in the last 10 years, have lost a large chunk of their holdings, as analysts blamed the development on massive selloffs witnessed in the nation’s bourse in the recent time due to prolonged confidence crisis and low liquidity.

AlsoRead

EFCC Arraigns Precious Williams for Alleged N13.8 Billion Ponzi Scheme Fraud

Kenya to Relocate Health Data from U.S. Servers After Trump’s USAID Funding Cuts

Nigeria’s Equities Market Reels as Foreign Investment Plummets Amid Global Tensions

So far, the earnings released by listed firms across all the quarters, including the half-year, have been weak, with most of them missing expectations and forecasts prompting negative price reactions in the midst of the prevailing low liquidity and even confidence crisis.

These are factors that have prolonged the negative market sentiments, in addition to the weak productivity and consumption, as earnings reporting season officially closed in July.Analysts noted that the ugly situation has been exacerbated by persistent economic uncertainties and slowdown that have bedevilled the country in the past few years, and therefore, urged government to revive the ailing economy with particular focus on insecurity and restoring confidence in the economy to attract more investments.

To underscore the deprivation of the stocks, at the close of transactions on December 31, 2009, UAC of Nigeria Plc shares stood at N36.75 kobo; regrettably, the same stock is now down to N4.80 kobo at the close of trading yesterday.Also, Guinness, which stood at N127.50 kobo during the same period closed at N41.40 kobo on Monday, just as Julius Berger fell from N55.60 kobo to N20.60 kobo.

Furthermore, Flour Mills, which share price stood at N36.00 crashed to N13.80. UACN Property, PZ Cussons and Honeywell Flourmills fell from N19.86, N25.00, and N8.50 to N1.11, N6.00, and N0.99, respectively.Speaking, the Chief Executive Officer, Investdata Consulting Limited, Ambrose Omodion, attributed the deteriorating state of the market to government’s failure to do the needful at the right time.

“Government has occupied itself with things that have very little socio-economic impact on Nigerians. As we have noted in the past, corporate earnings will, and have indeed started revealing the weak state of the Nigerian economy.”He therefore advised discerning investors to target value stocks considering the current low valuation to position for dividend income and capital gain.

Also contributing, the Managing Director of Crane Securities Limited, Mike Ezeh, noted that foreign and local investors have indulged in massive dumping in the past few years, which has ultimately depressed the share prices.“The politicians have been telling us that we are out of recession that Nigeria has bounced back, but we are still in recession. Both foreign and local investors are dumping their shares, and once this starts, prices will be depressed and the market will continue falling.

“It has never gotten this bad and it is very unfortunate. It is because the politicians have forgotten the economy of governance, and just facing the politics of governance. They do not care about investment, employment, productivity and the rest; the economy is in a comatose state, and that is a reflection of what we are witnessing in the stock market. He insisted that government must involve experts in governance to revitalise the economy, saying; “In terms of intellectual and input, Nigeria has developed so much that we can compete with other countries of the world, but politics is crude and backward. Our economists are excellent, they develop themselves.

“We must get economic experts into governance, let portfolios be assigned and let us know who the managers of the economy are,” he added.  Similarly, President of Constance Shareholders Association, Shehu Makail, said the current state of stock market is a reflection of the weak macroeconomic situation being witnessed in Nigeria.He said: “It is quite unfortunate that stock market investors have lost so much since after the 2008 global financial crisis. While other emerging markets like ours have wriggled out of the crisis, Nigerian stock market is still struggling to find its feet despite the measures put in place so far by the regulators to strengthen the market.

“Let us know the direction of the economy. Government needs to tackle the issues of insecurity headlong; it is an impediment to investment. If you do not address insecurity, you cannot grow the economy because investors will not want to invest where their investment is not secured, and we need FDI to grow our economy.”

Tags: ThisDay
Previous Post

BDCs prepare for FATF evaluation visit to Nigeria

Next Post

ABCON strategises against politicians, illicit financing

Related News

EFCC Launches Task Force to Combat Naira Mutilation and Dollarization

EFCC Arraigns Precious Williams for Alleged N13.8 Billion Ponzi Scheme Fraud

by Victoria Attah
June 17, 2025
0

The Economic and Financial Crimes Commission (EFCC) has charged Precious Williams, a director of Glossolalia Nigeria Ltd and Pelegend Nigeria...

Kenya to Relocate Health Data from U.S. Servers After Trump’s USAID Funding Cuts

by Victoria Attah
June 4, 2025
0

Kenya’s Ministry of Health announced plans to relocate critical health data hosted in the United States to local servers, following...

Leading Banks Struggle with Capital Deficits: Zenith Bank and Others Strive to Meet CBN Standards

Nigeria’s Equities Market Reels as Foreign Investment Plummets Amid Global Tensions

by Rate Captain
May 26, 2025
0

In April 2025, Nigeria’s equities market faced a stark reality check as foreign portfolio investment (FPI) cratered by 92.39%, plunging...

Africa’s Growing Enthusiasm for Technology Signals a Promising Future.

African Billionaires Experience Mixed Fortunes in 2024

by Victoria Attah
December 30, 2024
0

The financial landscape for Africa's wealthiest individuals saw significant fluctuations in 2024, with the collective wealth of the continent's top...

Next Post

ABCON strategises against politicians, illicit financing

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

IMF Applauds Tinubu Policy Reforms While Lowering Growth Projections

IMF Applauds Nigeria’s Tax Agency for Major Reforms, Pledges Continued Support

July 11, 2025
FG Allocates N5.1 Billion for Presidential Yacht and N5.5 Billion For Student Loans

Nigeria Secures $747 Million Loan to Advance Lagos-Calabar Highway Project

July 11, 2025

Popular Story

  • Nigeria’s Stock Market Records N1.81 Trillion Gain in July.

    Top-Performing Nigerian Equity Funds in January 2025

    0 shares
    Share 0 Tweet 0
  • Fair Money Job Opening: Regional Sales Manager

    0 shares
    Share 0 Tweet 0
  • FG Takes Governors to Supreme Court Over Local Government Allocations

    0 shares
    Share 0 Tweet 0
  • From Banker to YouTube Millionaire: The Inspiring Journey of Nischa Shah

    0 shares
    Share 0 Tweet 0
  • Nigerian Stocks Poised for a Comeback in 2025 After a Tough 2024

    0 shares
    Share 0 Tweet 0
RateCaptain

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
  • Cookie Policy
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

RateCaptain
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
?>