Nigerian equities lost a whooping N1.34 trillion in November as tough macroeconomic environment characterized by rising inflation, declining Gross Domestic Products (GDP) and improbable foreign exchange exacerbated major selloff of quoted shares.
The loss of N1.34 trillion in November compounded the losing streak, with investor losing N701 billion in October. The benchmark index at the Nigerian Stock Exchange (NSE) indicated average month-on-month decline of 13.49 per cent.
Aggregate market value of all quoted equities closed November yesterday at N8.689 trillion as against the month’s opening value of N10.028 trillion. The All Share Index (ASI), the value-based index that tracks prices at the Exchange, dropped from the month’s opening index of 29,177.72 points to close the month at 25,241.63 points.
Equities had lost N701 billion in October as share prices of quoted equities continued to fall in spite of the inflow of much expected third quarter earnings of companies. While many had hoped that the last quarter would see a stem of the negative tide that had ruled the market for the most part of this year, the fourth quarter has so far been dominated by negative sentiments.
Several quoted companies have continued to hit their lowest prices in the past one year while a large segment of stocks have stagnated at nominal value, underlining the widespread downtrend at the stock market.