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Harsh Economy Forces Equities Market To Shed N3.3 Trillion in 12 Months

The Nigerian equities market has lost N3.285 trillion in last 12 months, following investors’ weak demand for stocks as a result of the harsh economy.
Findings revealed that  the value of the equities, represented by the market capitalization, slid by 23 per cent or N3.285 trillion.
It dropped from N14.065 trillion August 8, 2014 to N10.78 trillion August 7, 2015. However, the bulk of the loss, which is N2.588 trillion or 17 per cent was recorded in the last four months of 2014.
The market had ended 2014 with a dip of 16 per cent measured by the Nigerian Stock Exchange (NSE) All-Share Index (ASI). The ASI closed last Friday, August 7 with a year-to-date decline of 9.3 per cent. In terms of market capitalisation, the market has declined by 6.1 per cent or N697 billion between January and last Friday.

According to market analysts the negative performance of the market year-on-year is in line with the general economic situation of the country.

They said the Nigerian economy is contending with low crude oil prices, weak exchange rate and dwindling consumer purchasing power that has affected the demand for goods produced by listed companies.

The Director General of the Securities and Exchange Commission, Mounir Gwarzo, who spoke on the state of the market, said the market,would do better once the economy overcomes the oil price and exchange rate volatility.

 

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