The impact of the COVID-19 on the Nigerian Stock Exchange (NSE) has continued to drag the bourse on the bearish trend as the first trading session of the week closed with investors losing N259.2 billion, totaling a huge loss of N2.349 trillion ($6.525 billion) between March 2 and March 23. 2019.
The bourse on Monday witnessed huge price depreciations in the banking index which dragged the All-share Index (ASI) to a 2.24% decline, from 22,198.43 to 21,700.98 points.
Similarly, market capitalisation plummeted from N11.568 trillion to 11.308.9 trillion at the end of Monday trading session, consequently investors lost N259.2 billion.
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The loss was recorded on Monday despite Central Bank of Nigeria’s (CBN) injection of N3.5 trillion stimulus to combat the impact of coronavirus on the economy.
The CBN also adjusted Naira rates from N306 per dollar to N360 and N380, a move which was aimed at boosting the economy.
Meanwhile, analysis by THE WHISTLER between March 2 to March 23, 2019, showed that investors on the Exchange recorded a huge loss after market cap. fell by 17.2%, from N13.658 trillion to N11.308.9 in the period under review.
The 17.2% drop ranslates to N2.349 trillion ($6.525) loss made by investors due to the negative effect of the COVID-19 on the global economy.
Within the period, ASI also plummeted by 4,515.48bsp from 26,216.46 to 21,700.98 points, representing a decline of 17.2%.
Analysts at Afrinvest Research believes the bearish trend will continue as the pandemic rages, adding that “we, however, note that current prices present opportunities for bargain hunting.”