Investors lost N1.18 trillion in the nation’s Stock Exchange in November, following sell pressure caused by drop in oil price at the global market, the News Agency of Nigeria reports.
Statistics from the Nigerian Stock Exchange for the period under review showed that the market capitalisation dropped by N1.18 trillion to close at N11.404 trillion against N12.579 trillion achieved in October.
The All-Share Index lost 3436.94 basis points or 9.04 per cent to close at 34,543.05 compared with 37,979.99 posted in October due to price depreciation.
A total of 9.08 billion shares worth N100.4 billion were transacted by investors in 93,875 deals against the 7.02 billion shares valued N73.56 billion traded in 85,372 deals in October.
The financial services sector emerged the toast of investors during the period, accounting for 7.37 billion shares worth N52.24 billion traded in 50,692 deals.
It was trailed by the conglomerates sector which accounted for 542.61 million shares valued N2.62 billion exchanged in 5,903 deals.
Some stakeholders who spoke with NAN on the persistent market downturn attributed the development to uncertainties surrounding the 2015 general elections and exit of foreign investors.
Mr Emeka Madubuike, President, Association of Stockbroking Houses of Nigeria, attributed the development to the Central Bank of Nigeria tight monetary policy in defence of the nation’s currency.
Madubuike said macroeconomic changes made the fixed income instruments more attractive when compared with return on equities.
He said the market would not experience any major growth in December due to Yuletide and continuous drop in crude oil price at the international market.
Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., described November as the worst period in the nation’s capital market.
Kurfi said that uncertainties in the nation’s economy and security challenges contributed to the lull in the equities market.
He said the economy would not experience any meaningful growth and development with the present security issues.
Kurfi said that the Federal Government should address the issue critically to boost investor confidence