• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Opinions Market Views

Nigerian Stocks snap 7-year losing streak to post first gain in August

Op-Ed Contributor by Op-Ed Contributor
September 7, 2020
in Market Views, Spotlight
Nigerian Stocks snap 7-year losing streak to post first gain in August
Share on FacebookShare on TwitterShare on Linkedin

Equities trading in August welcomed the release of Nigeria’s Q2 2020 GDP data, which captured the full impact of the lockdown on economic activities induced by the pandemic.  

The economy contracted by 6.1% y/y from 1.9% y/y in Q1 2020, making it the worst performance on record, according to the National Bureau of Statistics’ report.  

READ: Sterling Bank’s earnings to remain pressured but valuations still attractive

RelatedStories

Top 10 African countries with the highest international airfare charges in 2024

Top 10 African countries with the highest international airfare charges in 2024

July 7, 2025
Energy prices, Diesel

Diesel price in Nigeria surges 25% to N1,758 in May 2025 – NBS 

July 2, 2025

That said, the stock market was relatively calm for most of the month and appeared decoupled from the rest of the economy. Despite the calmness, the NSEASI (up 4.6% QTD), advanced 2.5% in August outperforming the 0.9% gain in July and the 3.1% loss in June.  

In terms of activity, while the average daily volume increased by a whopping 15.7% to 224.5 million shares, transaction value rose at a slower pace of 1.3% relative to July level.  

The absence of foreign players further stoked silence in the market as Foreign Portfolio Investment (FPI) moderated by 91.1% y/y and q/q to $385.3m in Q2 2020, the lowest since Q1 2017. FPI flowed into the equities moderated by 89.3% y/y and 91.7% q/q to $53.3m.  

READ: Access Bank posts Profit Before Tax of N74.31 billion in H1 2020

We attribute the weakness in FPI flows to the nation’s currency crisis, with over $2.0 billion of foreign investor funds searching for an exit.  

Furthermore, the extended delay in the submission of H1 2020 earnings from bellwether companies, particularly in the banking sector, hampered investment decision making for the local investors. 

We are optimistic that the mid-to-long-term outlook for equities is positive, as economies across the world continue to reopen for business and the CBN can rein in the chaos at the FX market.

READ: World Bank predicts Nigeria’s impending recession will be worst in 40 years

Nigerian equities are relatively still undervalued at 9.0x P/E ratio compared with Egypt at 11.5x, South Africa at 19.2x, and the BRICS markets at 17.4x.  

This presents an attractive investment opportunity for long-term investors across selected sectors, which we believe are better placed, despite the fear of a looming recession by the end of Q3 2020.  

As at the end of the first trading week in September, all the outstanding tier-1 banks have published their H1 2020 numbers, which showed resilient performances amidst the present economic woes. This further supports our mid-to-long-term positive outlook. 


 

 Written by Abiodun Keripe, Managing Director, Afrinvest Research 


Follow us for Breaking News and Market Intelligence.
Tags: Abiodun KeripeAfrinvest ResearchBRICS marketsFPINational Bureau of StatisticsNigeriaNSEASISouth Africa
Op-Ed Contributor

Op-Ed Contributor

Nairametrics frequently publishes articles from experts such as financial analysts, economists, researchers and investors. We also feature articles from guest writers and bloggers who wish to push their views and opinions through our platform. To get your articles on Nairametrics, kindly send an email to info@nairametrics.com and we will publish it within 24 hours of approval by our editorial team.

Related Posts

Top 10 African countries with the highest international airfare charges in 2024
Aviation

Top 10 African countries with the highest international airfare charges in 2024

July 7, 2025
Energy prices, Diesel
Energy

Diesel price in Nigeria surges 25% to N1,758 in May 2025 – NBS 

July 2, 2025
Lagos emerges the world’s fastest-growing tech city in 2025 
Hospitality & Travel

Most expensive African countries to rent a home in 2025 

June 24, 2025
Food items,
Economy

Top 10 Nigerian states with highest food inflation in May 2025, Borno tops the chart 

June 19, 2025
Top 10 most affordable states to live in Nigeria – May 2025 ranking  
Economy

Top 10 most affordable states to live in Nigeria – May 2025 ranking  

June 18, 2025
crude oil
Economy

Crude becomes Nigeria’s third largest import as local refineries seek foreign oil 

June 17, 2025
Next Post
Central Bank of Nigeria, Foreign exchange market, Naira vs dollas, IMF, Foreign Reserves, External reserves, CBN, Why do we all love the dollar? 

Naira gains at NAFEX window as CBN block accounts of some firms for forex abuse

Leave a Reply Cancel reply

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

Emple
nlng
first bank








DUNS

Recent News

  • EFCC begins probe after Customs arrests man with undeclared $420,900, £5,825 at Kano airport 
  • CBN deadline: Nigerian banks race to file capital restoration plans by July 14
  • FG opens Abuja passport office for senior officials to reduce processing delays 

Follow us on social media:

Recent News

EFCC begins probe after Customs arrests man with undeclared $420,900, £5,825 at Kano airport 

EFCC begins probe after Customs arrests man with undeclared $420,900, £5,825 at Kano airport 

July 8, 2025
CBN, forex

CBN deadline: Nigerian banks race to file capital restoration plans by July 14

July 8, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics