Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Markets Equities Stock Market

THE BIG CORRECTION: Why the stock market sells off every August

Nairametrics by Nairametrics
September 4, 2017
in Stock Market
THE BIG CORRECTION: Why the stock market sells off every August
Share on FacebookShare on TwitterShare on Linkedin

Every August most investors expect a “ghost” to appear and scare everyone away. The ghost in the real sense is the bang on belief that the stock market will turn out bearish in August.

For ardent investors in the Nigerian stock market, the month of August is easily one they can always place a bet on. Every year for the last 5 years, the All Share Index has closed on the negative in the Month of August.

August All Share Index Since 2006

RelatedPosts

The Nigerian stock market loses over N20 billion amidst sell-pressures

NGX resumes week on a bullish note with the market capitalization up by N139 billion

 

[wpdatachart id=143]

News continues after this ad


 

It doesn’t just stop there! The All Share Index has caved in to the bears, 10 times out of twelve in August of the last 12 years. The market has also posted a negative for 16 years out of the last 33 (since 1985) and 15 times out of the last 20 years. It’s a remarkable streak that we have come to know as the Ghost of August here at Nairametrics. That’s not all! The stock market has not posted a back to back gain in the month of August, since it did so in 2005 and 2006 (4.7% and 18.7% respectively).

News continues after this ad


What triggers the “ghost”

Analysts opine the reason for the streak of losses recorded in the month of August us due to the summer holidays that results in low investor participation. The theory is that most investors are on holiday in the month of August and as such there are more offers than bids thus triggering lower prices. This year, the stock market lost for the 4 straight trading session for the week as investors sold off to take away some profits.

Some analysts also opine mark downs are also reasons why August always end of bearish for the stock market. As companies earnings in July, most of then choose August to close their register as well as pay for dividends.

 

Related

Tags: All Share IndexAugust StocksChartsQuickTakes

Leave a Reply Cancel reply

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

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Sujimoto launches her new luxury condominium with Oikos premium doors
    • Lagos announces partial closure of Third Mainland Bridge
    • Five jobs in Nigeria’s fashion industry that are not design-related

    Follow us on social media:

    Recent News

    Sujimoto launches her new luxury condominium with Oikos premium doors

    Sujimoto launches her new luxury condominium with Oikos premium doors

    August 13, 2022
    Third Mainland Bridge is intact and safe for commuters - FG

    Lagos announces partial closure of Third Mainland Bridge

    August 13, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com