The Nigerian stock market underperformed in October as investors lost about N383 billion worth of their investment.
Analysts have noted that the loss, the biggest since July, came amid broadly subdued July to September corporate earnings and profit-taking on the gains recorded in September.
Specifically, the market capitalisation, which represents total value of stock market transactions dropped by N383 billion to close the last trading day of October at N9.350 trillion from N9.733 trillion it opened for the month. In the same vein, All- Share-Index dropped by 3.94 per cent to close at 27,220.09 points from 28,335.40 points it begins the month.
Reviewing the monthly activates further showed that the total volume of shares traded on the NSE for the month of October dipped by 53.84 per cent as investors traded 3.67 billion shares worth N32.02 billion transacted in 55,397 deals, lower than 7.95 billion shares valued at N47.39 billion achieved in 65,193 deals in September.
Analysts at Cordros Capital said, “At the beginning of the month, stocks prices suffered as a result of investors taking profit after the market had rallied in most weeks of September.