Investors lose N409.11bn in equity market as index slumps to 27,000bps

By Chioma Obinagwam

Investors in the Nigerian Stock Exchange(NSE) has continued to record losses since the first trading of the year as key measurement indicators maintained a negative stance.

According to data gather from the NSE, Market Capitalisation of listed equities on the main board of the Exchange nose-dived from N9.76 trillion on Monday to N9.35 trillion on Wednesday.

Thus, representing a whooping N409.11 billion decline or 4.19 per cent in just three trading sessions.

The Market Capitalisation is a measure of the total market value of an equity market and is used to compare the increase or decrease in the size of the market as a whole; also a key measurement indicator of NSE.

The NSE All-Share index followed the same pattern, stooping to 27,180.76 basis points(bps) from the 28,370.32 bps posted on the first trading day of the year, hence, representing 4.19 per cent drop.

An All Share index is a ​series of ​numbers which ​shows the ​changing ​average ​value of the ​share ​prices of all ​companies on a ​stock ​exchange, and which is used as a ​measure of how well a ​market is ​performing.

Analysts said it could be the consequence of the deteriorating health of the economy, particularly in the Foreign Exchange(Forex) market where it was recently reported that the naira dropped to as low as N267.5 the preceding day compared to the N263 it opened the market on Monday.

They also said that the market might be giving in to the predictions by the International Monetary Fund(IMF) Managing Director, Christine Lagarde that economic growth would be disappointing this year.

“A combination of rising interest rates in the US and weakening expansion in China is contributing to uncertainty and a greater risk of economic volatility across the world,” she said.

The IMF boss who is currently on a 4-day working visit to Nigeria said that the financial sector in many countries still had weaknesses and in many emerging economies the financial risks were increasing.

Meanwhile, cement manufacturer Dangote Cement shed N16.57 or 9.75 per cent from the N170 opening price to close at N153.43.

Union Homes shed 47 kobo; Skye bank, 14 kobo; Nigerian Breweries N6.74; Union Bank of Nigeria(UBN), 34 kobo; Eterna, 9 kobo; even as Tiger Brands shaved 5 kobo.

On the other hand, Lafarge Africa, also a cement major, added N8.99 or 9.36 per cent to its N96.01 opening price to close at N105.

Julius Berger gained 50 kobo; Nigerian Aviation Handling Company(NAHCO) grabbed 18 kobo; Fidson Healthcare, 12 kobo; Portland Paints and Products, 18 kobo; Ikeja Hotel, 15 kobo; Vono Products, 4 kobo, where as Learn Africa increased by 3 kobo.

Furthermore, investors exchanged a total of 202.72 million units of shares for N1.48 billion in 3,012 deals.