Nigeria: All-Share Index drops again

Nigeria: All-Share Index drops again

Wednesday, May 7, 2014 2:04 pm

Investors networth on the Nigerian Stock Exchange (NSE) depreciated by 0.66 per cent for the month of April from the 2.05 per cent drop achieved in March, the News Agency of Nigeria (NAN) reports.

Statistics from the NSE for the period under review showed that the All-Share Index decreased by 255.88 basis points to close the month at 38,492.13 against 38,748.01 posted in March.

The market capitalisation increased by N225 billion to close at N12.671 trillion due to the listing of Seplat Petroleum Development Company shares compared with N12.446 trillion achieved in March.

Also, the volume of shares declined by 4.62 per cent with an exchange of 7.43 billion shares worth N92.21 billion traded in 90,919 deals.

This was against the 7.79 billion shares valued N83.59 billion transacted in 92,958 deals in March.

The financial services sector remained the toast of investors during the period, accounting for 6.39 billion shares worth N57.66 billion traded in 53,814 deals.

NAN reports that the financial services sector in March traded 6.31 billion shares valued N46.04 billion exchanged in 52,945 deals.

Mr Ariyo Olushekun, President, the Chartered Institute of Stockbrokers (CIS), told NAN in Lagos that the market was responding to issues in the country.

Olushekun attributed the market instability to security turbulence that created fears among investors.

The CIS president said that the nation’s insecurity challenges was affecting the confidence of both local and foreign investors in the market.

Olushekun said that “security turbulence is affecting confidence of local and foreign investors”.

He said that electioneering activities ahead of the 2015 general elections and tight monetary policy of the Central Bank of Nigeria contributed to the market downturn.

Olushekun said that the market was trying to sustain recovery recorded in 2013, but unfolding events in the country had stalled the recovery process.

He, however, expressed optimism that the trend would not continue with the Federal Government’s commitment to address the security challenges.

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