Shareholders suffer N2.35 trillion loses in 11-months

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BY KAYODE OGUNWALE

Shareholders investing in the Nigerian stock market have suffered a massive loss of N2.349 trillion between January and November, 2018.

The market value which open the year at N13.620 trillion dropped to N11.271 trillion at the end of November trading. The decline in the market represented N2.349 trillion or 17.25 percent of shareholders investment value.

However, trading activities finished the month of November 2018 on the negative trajectory with a record of N581 billion loss to close at N11.271 trillion in market capitalization as growing political tension takes toll on the equity market.

Some market analysts believed investors should trade cautiously in the short to medium term, as selloffs are likely to persist, amidst the growing political and security tension ahead of the 2019 general elections.

Statistics available to New Telegraph showed that activities on the exchange, which opened the trading month at N11.852 trillion in marketcapitalisation and 32.466.27 in index points at the beginning of trading on November 1, closed the month on November 30 at N11.271 trillion and 30,874.174 index points, hence has earned a month to date loss of about N581 billion or -4.90 percent.

Further breakdown of the weekly transactions for the month showed that aside from the gain recorded in the second week of the month, the market recorded bearish activities during the rest of weeks.

The All-Share Index dropped by 342.23 basis points or 1.05 percent to close at 32,124.94 index points on November 2nd as against 32.466.27 recorded at the close of trading on October 31, while the market capitalisation of equities depreciate by N124 billion.

Trading activities during the second week ended November 9 revealed that the All-Share Index recorded the only gain of 75.27 basis points or 0.2 percent to close at 32,200.21 index points as against 32,124.94 recorded the previous week while market capitalisation of equities appreciated by N27 billion or 0.2 percent to close at N11.755 trillion compared to N11.728 trillion recorded the previous week.

In the third week ended November 16, the All-Share Index shed 141.93 basis points or 0.44 percent to close at 32,058.28 basis points as against 32,200.21 recorded the previous week while the market capitalisation of equities dropped by N52 billion or 0.44 per cent to close at N11.703 trillion from N11.755 trillion.

The stock market extended weekly losses as it finished at a loss of N138 billion during the fourth week ended November 23, while it finished the last trading week ended November 30 with a loss of N294 billion, the highest loss recorded in the month.

The ASI shed 2.54 percent, the largest weekly drop since mid-September. Consequently, the month-to-date (MtD) and year-to-date (YtD) losses increased to 4.90 percent and 19.27 percent, respectively.


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