Investors in the country’s capital market (equity category) lost over N1.053tn in the first quarter of 2016.
Within three months (January to March), the equities market depreciated by 10.79 per cent according to available data covering dealings on the floor of the Nigerian Stock Exchange.
As of the first day of trading this year (January 4), the NSE market capitalisation stood at N9.757tn, while the All-Share Index was 28,370.32 basis points.
But as of the last day of trading in 2016 Q1 (March 31), the market capitalisation and All-Share Index crashed to N8.704tn and 25,306.22 basis points, respectively.
Equity investors in the country’s capital market had, in the first seven trading days on the floor of the NSE in 2016, lost N804tn of their investment worth.
Market capitalisation after the close of trading on the floor of the Exchange on the first seven days closed at N8.953tn.
The All-Share Index also dropped from 28,370.32 basis points recorded on the first day of trading in 2016 to 26,034.94 seven trading days into the year.
The downward trend in the Nigerian stock market, weeks into 2016, did not show any sign of abating as the market capitalisation has continued to fall, with 10 out of the 12 indices of the NSE recording negative stance 10 weeks into 2016.
The market capitalisation of the NSE had fallen by N811bn in 10 weeks from the first trading day of the year.
Market capitalisation is the total market value of the shares outstanding of a publicly traded company.
The NSE market capitalisation dropped from N9.75tn on January 4, 2016, to N8.939tn 10 weeks into the year, while the All-Share Index also closed at 25,988.40 basis points from the 28,643.67 basis points recorded on the first trading day of the year.
Investors had also made huge losses in the Nigerian equities market last year, as the market capitalisation (equities only) of the NSE shed a total of N2.354tn between December 2014 and December 2015.
Commenting on the market trend, the President, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, described the prevailing development in the market as very challenging.
According to him, all stakeholders must work together towards ensuring that the market rebounds.
Aside the NSE developing programmes for the market and implementing needed policies to drive market growth, Okezie said the quoted companies should adhere to market rules and best practices so that market structure remained fortified.
Also commenting, the President, Constance Shareholders Association of Nigeria, Alhaji Shehu Mikail, attributed the market woes to alleged bad political and economic decisions of the current government.
He said the unpopular policies of the government had continued to fuel the embers of negative market sentiment by foreign and local investors.
The Chief Executive Officer, NSE, Mr. Oscar Onyema, while commenting on the state of the market, had said, “Among emerging markets, recession has materialised in Brazil and Russia, and the trend is likely to continue amid weakening oil and other commodity prices. The Nigerian stock market had already lost $30bn since July 2014.”
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