13 September 2018 : With uncertainty surrounding the upcoming elections and other external developments that have seemingly increased the allure of foreign assets, the Nigerian equity market has been on a southward path for the most of 2018. Whilst the market pull-back began since the end of January, losses on the exchange appear to have intensified in recent time, with August recording the second largest m/m loss so far this year at 5.9% and month-to-date losses in September already topping this figure at 7.3%. 

Recent developments surrounding regulatory fines and penalties appear to have worsened investor sentiment. Though other African markets appear to have also suffered from weak investor sentiment (Kenya: -6.6% and South Africa: -6.0%), Nigeria has recorded the most sizeable sell-offs with year-to-date losses at 15.6% as blue-chip stocks such as NB (-38% ytd), ZENITHBANK (-23% ytd), GUARANTY (-20% ytd) have dropped to recent lows. Analysts expect investor apathy for Nigerian securities to keep the downward pressure on stock prices for the rest of 2018. 

Reporting for EasyKobo on Thursday , 13 September 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited