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Stock investors lose N600bn, market cap falls below N20tn
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Investors lose N240bn as stocks extend losing streak
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NSE Weekly: 43% drop in trade volume depletes value of stocks by N130bn
All indices fell save for the NSE Banking, NSE AFR Div Yield, NSE MERI Value, NSE Oil/Gas and NSE Growth Indices.
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Nigerian equities shed N130.017 billion this week as the liquidity crisis in the market aggravated, setting in motion a 43 per cent fall in turnover.
Funds have been steadily exiting the stock market because high yields on government bonds and recently auctioned treasury bills seem to offer better returns at the moment.
But analysts at Investdata Consulting Limited believe stocks are experiencing a moment of market correction after reaching certain high levels in price movement especially in January. They see the current low prices as an opportunity for smart fund managers to leverage.
Nigerian Stock Exchange (NSE)
As investors worry over the continuous uptick in yields in the fixed income market, negative sentiments persisted on the Nigerian Stock Exchange (NSE) for the second consecutive week, causing the All-Share Index (ASI) and market capitalisation to fall by 3.04 per cent to close last week at 40,439.85 and N21.156 trillion respectively.
Performance in the stock market ended southwards following losses recorded four trading sessions.
All other indices finished lower except NSE Growth Index which rose by 0.42 per cent while the NSE ASeM and NSE Sovereign Bond Indices closed flat.
Analysts linked investors’ downbeat mood during the week to the result of the treasury bills auction wherein average stop rates rose by 105bps to 2.33 per cent (from 1.28 per cent at the last auction).
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