Industrial Goods, Oil/Gas, insurance post highest negative returns in 2016

By Ihesiulo Grace

2 January 2017

Business

…As Banks records highest returns

Against expectations that negative returns by the industrial sector, oil and gas and the insurance companies would abate by the end of the year, the reverse was the case as the three sectors offered investors the highest negative returns on investments for the 2016 financial year.

The industrial goods sector closed the 2016 trading year with the highest negative returns on investments, at -26.37 per cent. The sector had opened trading for the last week of the year at 1,597.67 and closed at 1,595.33 on Friday December 30^th, 2016. On the whole sector recorded negative returns through the measuring indices as it closed a one year investment period at .-26.37 per cent.

Industrial goods also recorded -13.03 over a six months investment period while -0.15 was recorded for a one month business period.

The NSE oil and gas index during the period fell by -12.31 per cent over a one year trading period. The oil and gas measuring index opened the last trading week for the year at 317.35 and closed the week lower at 312.68. Negative trends characterized the trends, -4.67 recorded in the last week of the year, -1.47 posted in a month’s trading period (mtd0 while -6.31 was also recorded over six months trading period,

Some of the oil and gas stocks quoted on the floor of the NSE are Japaul Oil and Maritime Services, Oando, Conoil, Eterna Oil, Forte Oil, Mobil Oil Nigeria, MRS Oil Nigeria, Total Nigeria and Seplat Petroleum Development Company, among others.

The Insurance sector placed third in negative returns for the 2016 financial year ended December 31st, 2016 with -11.44 per cent returns on investment for the year.

The sector opened the last trading week of the year at 122.95 and closed higher at 126.29 on Friday, December 31st, 2016. Mixed performances trailed the sector through the year posting -2.54 over a six months period and positive returns over the quarter and months period at 1.90 per cent and 2.72 per cent respectively (qtd and mtd).

However, the NSE banking and insurance indices appreciated by 9.20 and 4.47 per cent, respectively.

The NSE Mainboard index placed forth on negative returns for the year with -10.02 per cent returns on investment over the 2016 investment period. For six months the sector returned -5.56 per cent while over a three months investment period, returns were positive at 3.31 per cent

Meanwhile, the banking subs sector of the financial services sector emerged with the highest returns to investors at 2.17 percent, having returned -0.16 over six months period and 7.78 per cent over a three months investment period.