NSE Reveals Capital Market Loses N1.63trn in January

As the economy slides further, according to statistics from Nigerian Stock Exchange (NSE), Thursday, reveals that the stock market lost over N1.63 trillion in January due to profit-taking and currency volatility.
The News Agency of Nigeria (NAN) reports that the drop represented a 16.50 per cent to close at N8.225 trillion from the N9.850 trillion in December.
Also, the All-Share Index decreased by 4726.10 points or 16.50 per cent to close for the month at 23,916.15 against 28,642.25 posted in December.
The volume of shares traded also declined by 5.67 billion shares worth N42.05 billion traded in 67,479 deals from the 7.23 billion shares valued N55.28 billion transacted in 53,414 deals in December.
The decline represented 21.58 per cent.
The Financial Services sector remained the toast of investors during the period, accounting for 3.87 billion shares worth N16.93 billion traded in 27,065 deals.
Mr Kayode Tinuoye, Head, Research Unit, United Capital Plc, called for increased local investors’ participation in the nation’s bourse to help mitigate the impact of external portfolio shocks.
Tinuoye said the dominance of foreign participation in the market in the past four years led to the capital market negative reaction to the global shocks.
He said that market volatility and sell pressure were driven by capital flight.
He added that there was need for increased local participation to insulate the domestic market from external shocks and currency volatility.

Access More with Access Bank

Related Articles

One Comment

  1. was: “The recent round of apieacprtion has been abnormally quick and doesn’t seem to be related to the domestic factors .” The domestic factors part is important, because he is concerned that the fundamentals don’t support the Loonie’s rise and that it’s being driven by speculation. The ongoing mystery is apieacprtion of the Loonie against non-U.S. currencies when not much has changed, and the worst fear is that its driven by North American investors who previously invested in the U.S. looking for another, somewhat familiar, place for their cash. Or maybe it’s just the price of Oil…

Leave a Reply

Your email address will not be published. Required fields are marked *