Rak Unity and Continental Reinsurance and eight other stocks emerged the worst performing stocks on the Nigerian Stock Exchange in August in percentage terms.
Data obtained by the News Agency of Nigeria from the exchange showed that the shares of Rak Unity declined by 25 per cent, while Continental Reinsurance dropped by 24.08 per cent.
Specifically, the stocks, which opened at 40k and N1.91 each, dropped by 25 per cent and 24.08 per cent to close at 30k and N1.45 per share respectively.
Ambrose Omordion, the Chief Operating Officer, InvestData Limited, attributed Rak Unity’s decline to price adjustment for 10k dividend declared.
Omordion said the loss recorded by Continental Reinsurance during the period was due to weak second quarter numbers and sell pressure in the market.
Redstar lost 23.30 per cent, UACN Property dipped by 22.12 per cent, International Breweries, 22 per cent and Okomu Oil, 20.19 per cent.
Other shares that declined were: Seplat, 18.84 per cent; Cadbury, 18.42 per cent; FBN Holdings, 16.67 per cent and Forte Oil,16.28 per cent.
Conversely, C & I Leasing was the best performing stock in percentage terms, growing by 33.33 per cent to close at N7.30 per share. Berger Paints rose by 31.58 per cent to close at N7.50 per share.
Others are: Cement Company of Northern Nigeria, 28.86 per cent; BOC Gas, 20.71 per cent; John Holt, 19.57 per cent and MTN Nigeria Communications, 11.02 per cent.
Africa Prudential, 9.59 per cent; Axa Mansard, 9.09 per cent; Sterling Bank, 8.70 per cent and Custodian and Allied, 8.11 per cent.
Commenting on market expectations going forward, Omordion noted that the Purchasing Managers Index expansion would be sustained in the coming months.
This according to him, will depend largely on the full implementation of the 2019 budget as cabinet ministers settle down after assumption of office.
He said: “The recently released audited half and full-year earnings reports by companies should give investors and analysts insight into how to reposition and rebalance their portfolios ahead of Q3 score-cards.
“The recent Q2 numbers are expected to strengthen market fundamentals as the business environment is expected to improve.
“A few stocks still remain undervalued on the strength of their intrinsic value, a situation that should guide investors to know where to look, while seeking to invest profitability for the rest of the year.
“Traders and investors who understand the importance of combining fundamentals and technical analysis in making investment decisions should take this opportunity of pullbacks to the position in some sectors for short, medium and long term gains.”
Omordion added that the relatively low Price to Earnings ratio in the market may further attract demand for stocks.
He, however, stressed that investors must invest wisely using bids, offers, and volume when making decisions as a trader.
He added: “Managing risk and protecting capital at this point is very important, so you will determine when to buy or sell, by watching the stocks and the market, using technical analysis.”