Stock market loses N800bn in five days

16 February 2015, Lagos – In a week that was bearish, investors in the Nigerian equities market suffered massive losses triggered by huge sell-offs following negative reactions to the postponement of the general elections.

Nigerian Stock Exchange

Nigerian Stock Exchange

The equities market dipped by N801 billion as investors applied cautious trading, holding on to more investments as the await the general elections which have been shifted to March 28 and April 11, 2015.

It was expected that the holding the elections early will bring some relief to  the financial markets. But the shift in the dates  extended the tension in the market leading depreciation in the naira and tumbling in prices of equities.

Apparently worried by the negative reactions,  the Governor of the  Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, visited the Nigerian Stock Exchange (NSE) last Thursday, saying  there was no need for panic over the recent depreciation of the naira against the dollar.

He also reassured investors that the central bank would continue to meet legitimate foreign exchange demand. According to  him, the  nation’s currency was “appropriately priced.”

Those words of assurance did to calm the fray nerves of investors who continued with their dumping of stocks. Consequently,  the week, the twin market gauge- the Nigerian Stock Exchange (NSE) All-Share Index (ASI) and the market capitalisation of listed equities depreciated by 8.00 per cent to close last Friday at 27,585.26 and N 9.204 trillion respectively. The index has recorded a depreciation of 20.41 per cent from  the beginning of the year to last Friday.

Similarly, all indices finished lower during the week with exception of the NSE Oil & Gas Index that rose by 0.38 per cent, while NSE ASeM Index closed flat.

Summary of daily performance

– This Day

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