Market capitalisation decline is likely to continue – NSE boss

The NSE Chief Executive Officer, Mr Oscar Onyema, said that market capitalisation which has lost about N250 billion in five days may continue the trend with dwindling oil price and other challenging economic policies.

Speaking on the back drop of the continued decline in overall market capitalisation, Onyema said the market trend was a reflection of the nation’s economic condition. He said that the NSE would continue to position itself to be a credible platform for financing government’s deficit.

He said foreign buyers, who accounted for 54 per cent of trading volume, were on the sidelines owing to lack of clarity on Nigeria’s FOREX policy

Trading activities on the floor of the Nigerian Stock Exchange sustained a negative trend with the market capitalisation dropping by N250 billion for the fifth consecutive days

Market capitalisation lost N250 billion or 3.0 per cent to close at N8.086 trillion compared with N8.336 trillion on Thursday amid sales pressure. The NSE All Share index dipped by 725.94 points or 3.0 per cent to close at 23,514.04 points from 24,239.98 points recorded on Thursday.

It was gathered the volume of shares traded increased by 81.57 per cent due to sales pressure with an exchange of 476.65 million shares valued N6.16 billion transacted in 4,448 deals.

National daily gathered that this was in contrast with 262.52 million shares worth N2.41 billion exchanged in 2,579 deals on Thursday.

Major equities recorded price depreciation with Nestle leading with a loss of N38.95 to close at N740.05 per share. 7UP lost N8.75 to close at N166.25, while Dangote Cement dropped N5.18 to close at N133 per share.

Lafarge Africa dipped by N4.56 to close at N86.75, while GT Bank declined by N1.44 to close at N13.37 per share. Nigerian Breweries led the Gainers’ table, growing by N4.57 to close at N96.90 per share. Tiger Brand followed with 8k to close at 91k, while Live Stock Feeds gained 5k to close at N1.21 per share.

UBA appreciated by 1k to close at N2.60 per share, while GT Bank was investors’ delight accounting for 120.39 million shares worth N1.62 billion traded in 749 deals.

Zenith Bank sold 113.75 million shares valued at N1.08 billion, achieved in 802 deals, while UBA exchanged 44.61 million shares worth N116.75 million in 347 deals.

Transcorp posted a turnover of 28.93 million shares valued at N28.57 million in 184 deals and FBN Holdings traded 26.68 million shares worth N95.99 million in 456 deals.