NSE Investors Lose N1.86trn In 7 Trading Sessions

Pressures on global stock markets have dragged investors in the Nigerian Stock Exchange to a N1.867 trillion loss in 7 trading sessions between March 6 and 16. The market has witnessed sharp sell-offs within the period following investors risk off sentiments.

Market capitalisation had on March 6 closed at N13.7 trillion, while the black Monday which began on March 9, dragged market cap to N13.36 trillion.

The bearish trend continued on Monday, March 16, where decline in oil price below $30 per barrel further dragged mark cap to N11.832.2 trillion, consequently shedding investors fund by N1.86 trillion.

The NSE index dropped to 22,705.19 points at the end of Monday session, which represents a 13.6% decline from 26,279.61 closing index on Friday March 6.

Investors have continued to move their funds in safe havens assets, as they fear the financial implications of the rapid spread of the pandemic.

The Central Bank of Nigeria had on Monday made its first response measures to ensure financial stability in the money and capital markets.

The bank had announced interest rate cuts on all of its intervention facilities from 9% to 5%, and N50 billion credit facilities for sectors that had been hit by the negative effect of the pandemic.

Afrinvest Research had said during the week’s trading sessions, “we expect a mixed performance in the domestic equities market, to be driven by a risk-off sentiment and bargain hunting activities.”