Year-to-date (YtD), the Nigerian stock market is the second least performer among twelve other global bourses, Business Day investigation has shown.
In the first half (H1) of this year, while the São Paulo (Brazil) Stock Exchange (Bovespa) is in the negative region of -4.23 percent; the Nigerian Stock Exchange All Share Index, which tracks the general market movement of all listed securities on the Exchange, including those listed on the Emerging Market board, grew by 4.19 percent.
These performances come as Egypt EGX 30 rose highest by 29.99 percent YtD; followed by the Nairobi NSE 20 which rose by 15.57 percent.
Other global indices with their YtD returns, include India BSE SENSEX 30 which closed high at 12.79 percent; Ghana GSE rose by 7.89 percent; NASDAQ rose 12.66 percent.
Also, the Dow Jones Industrial Average rose 5.42 percent; NIKKEI 225 was 6.52 percent high; German Stock Index DAX rose 8.78 percent; Johannesburg Stock Exchange FTSE which rose 5.39 percent; S&P 500 was 8.31 percent high.
Looking at the global market, analysts at Financial Derivatives Company Limited said the indices are “still up but swimming directionless".
On the Nigerian bourse, the analysts said: “Market pace slowed in Q2; adding that there was hesitant Q2 market, following a strong Q1. YtD performance is in the green as a result of bullish Q1. Is it time to buy this dip? Yes and No. Looking out the next 6-12 months, we see the market as being higher than it is now. In the short run, it is a bad environment with 50/50 odds of breaking out below the 200 day moving average of 20,952.61.”
In their recent report for June, presented at the Lagos Business School executive breakfast meeting, analysts at Financial Derivates said: “Market see-sawed its way through June,” adding that the market was gripped by Schizophrenic attack as SEC DG was sent on leave and a new president resumed at the NSE.
The Nigerian stock market trended southward, breaking below the 200 days moving average on the 8th of June. Marginal correction and short rally led the market to close at 21,542.23 points. The stock market lost 212 basis points for the month (June).
The market turnover was at a historically thin level, while average daily value traded for the month was N1.49 billion “after stripping out the abnormal trade in Union Bank and Law Union & Rock Insurance. Of the 21 trading days in the month, only 5 days had turnover of over N2billion.”