How listed companies on the Nigerian Stock Exchange experienced loci of control in March, 2018

1. Enterprations Strategy
People Process Technology
our weeks of trading activities
on the floor of the Nigerian
Stock Exchange Commission inFMarch, 2018 were full of internal and
external controls which impacted the
companies' shares positively and
negatively, our research suggests.
Within the internal locus of control,
c o m p a n i e s , t h e e x c h a n g e
commission's tactics paid off as gains
edges up and losses reduced and aged
Nigerians bought shares than youths.
For the external control, fluctuations
in the exchange rate affected 5
sectors' share index while 95% of
herdsmen incessant killings affected
consumer, industrial goods sectors'
indexduringthemonth.
Despite these negativities, 2.1 billion
shares worth N39 billion were traded
Stock Market:
The Tug of Loci of Control
Enterprations Strategy, April 2018

2. in Week 9. This rose to 3 billion shares valued at N39.9 banking could be linked to its improvement on the close in negative direction in relation with the
billion in Week 10. It was, however, dipped in Week 11 stock. Fans of the artiste especially the youth who are exchange rate but varied in prediction. Over 9% of the
and 12, when the total market shares were 2.4 billion investment minded could be lured and bought the stock volume recorded during the week was as a result
and valued at N36.6 billion, and 2.3 billion and valued company'sstocks. of exchange rate instability. The effect increased to
at N28.9 billion respectively. Based on performance by Over 100% subscription recorded by Consolidated 11.9% when the rates were analysed along with the
industry,financialservicesledinalltheweeksfollowed Hallmark Insurance for its N500 million right issue is stockvalues.
by consumer goods in week 11 and 12, and oil and gas an indication of shareholders' full support and Substantial stock volume and values were attained
inthesameweeks. confidence in the operations of the organisation. when $1 equalled N355 and started sliding when it
Nascon Allied Industries investment in backward reached N357 and picked a little at N359, indicating aWeek Nine: Companies and NSE's tactics
integration projects as a strategy to diversify and add significant relationship between the two indices and apaidoff
more value to both its shareholders and the Nigerian significant prediction (86.7%) of stock volume from
AsNigerianStockMarketcontinuestomakesignificant
economyhelpeditgreatly. values.
impactonthecountry'seconomy,listedcompaniesand
The new pricing regime introduced by the Nigerian It is imperative to understand the linkage between the
the commission's tactics paid off during the week. The
Stock Exchange's management assisted the decliners two markets towards inclusive growth and
topgainersand declinersrecordedimprovedgainsand
in having insignificant loss. Unic Diversified Holdings, profitability creation especially for global fund
reducedlossesincontrasttothepreviousweek.
Multiverse Mining and Explorations and FTN Cocoa investors who are planning to invest in the country's
In the week leading to the week under review and
Processors into the 46 dormant equities worth N151.5 stockmarket.
within the Week 9, companies' different activities on
billion as at December 31, 2017 but the new pricing Week Eleven: Aged and Nigerian youths'their processes, strengthening relationship and
rule helped in salvaging the situation, experiencing Sharespurchaseacquisition helped in rekindling investors' confidence
significant price movement since the adoption and
intheirstock. In our efforts of playing up the weekly activities, we
implementation.
A review of the prices and returns attained by the discovered that the current age structure predicted
Week Ten: Exchange rate fluctuations andgainers and decliners established that there was an total turnover volume by 95.7%. This is an indication
sectors'shareindexperformanceimprovement. Top gainers for Week 8 opened trading that there is a clear link between the present age
with N72.37 while it was N77.43 in the week under The outcomes of the trading activities on the Nigerian structure in the country and the volume of the stocks
review. The total gain for the top gainers in Week 8 was Stock Exchange's floor modeled along with the traded during the week. Further analysis shows that
N5.06. This increased to N10.73 in the current week. exchange rate of Naira to US dollar shown that Nigerians above 64 years old, Nigerians under 15 years
For the decliners, open and close prices in Week 8 were instability of the country's currency dealt decisive old and young Nigerians between 15 and 64 years old
N52.59 and N43.98 respectively. The prices dipped to devastation on the volume and values of the equities relatedwithtotalturnovervolumeonMarch12th,13th
N6.09 and N5.27 for open and close accordingly while traded. and14threspectively.
recorded total recorded loss was N-0.82 in the current Our further analysis on the core trading activities Based on the analysis and its outcomes, our analysts
week. indicates a negative relationship between the share observe that investment activities occurred along the
Our checks revealed that signing of $350 million index of five sectors at first and last day of trading investors' lifestyle stage. It clearly shows that adults
financing agreement with Milost Global Incorporated activities during the week. The fluctuation in the and parents and guardians bought shares (for their
byJapaulOilandMaritimeServicesPlcduringtheweek exchange rate affected the share index of Banking, children) more than Nigerians between 15 and 64
improved investors' confidence. Unity Bank's Insurance, Consumer Goods, Oil and Gas and Industrial years old. This is unusual for aged Nigerians who are
announcement of Adekunle Gold, a multiple award- Goods sectors in the first day by 42.8% while it expected to invest less because they have less time to
winning singer,songwriter,and creativedesignerasits increasedby0.2%,makingit43%. enjoy the fruits of their investments if the current life
Youth Brand Ambassador, as part of its drive on retail The stock volume and values were equally found to expectancyistenable.
Enterprations Strategy, April 2018

3. affected the most need to devise strategies and tactics to mitigate the factors.Week Twelve: 95% of herdsmen incessant killings affected
Analysed internal indices should also be prioritised by the companies adoptingconsumer,industrialgoodssectors'index
appropriate solutions. Government needs to improve its efforts on security and
As 2.3 billion shares worth N28.9 billion in 25, 530 deals were traded by investors
macroeconomic policy that would make the stock market strong towards
on the floor of the Exchange in contrast to a total of 2.444 billion shares valued at
sustainableeconomicgrowth.
N36.665 billion that exchanged hands last week in 26,712 deals, herdsmen
incessant killings had significant impact on the consumer and industrial goods
sectors'index,ouranalysisreveals.
The two sectors' index during the week was 3, 244.58. With 2, 283.04, industrial
goods sector recorded the highest index followed by consumer goods which polled
961.54 at the close of the week. Modeling of these indexes with the herdsmen
killings trending from March 19th to March 23rd, 2018 indicates that 95% of the
killingsimpactedthetwosectors.
These are the sectors that involve in production, manufacturing and distribution of
both consumable and non-consumable goods across the country. The industrial
goods sector currently has 17 companies while 21 companies are listed under the
consumergoodssector,accordingtotheNigerianStockExchange.
Since 2017, the clash between herdsmen and farmers in agrarian states especially
Taraba, Plateau and Benue remains a trending issue in the country. In Benue state,
the food basket of the nation, has recorded over 500 reported cases of deaths in
Buruku, Kwande, Agatu, Gwerwest, Guma and Gboko, the worst hit being Buruku
andKwandeLGareas.
StrategicOptions
Companies operating within the sectors where the examined external factors
Enterprations Strategy, April 2018
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