02 January 2017, Lagos – The Nigerian stock market went down by 6.17 per cent in 2016, making it the third consecutive decline as economic headwinds affected investors’ participation in the market.
However, the decline in 2016 is lower that what was recorded in 2014 and 2015 when the market dipped by 16.1 per cent and 17.4 per cent respectively.
Specifically, the Nigerian Stock Exchange All-Share Index fell from 28,624.25 at the beginning of the year to 26,874.62 translating to a decline of 6.17 per cent.
The market has suffered from low patronage due to many factors including unfavourable policies, devaluation of naira among others. Although the market rebounded in the last two months of the year, that positive performance was not enough reverse the losses recorded in the earlier months.
“Most of the stocks are in their lowest prices of over 15 years or even more. The foreign investors that used to patronise the market with over 50 years turnover have moved elsewhere. However, once the recession is over, hopefully, by next year, the market will also improve,” Kurfi said.
Founding member of Nigeria Shareholders Solidarity Association (NSSA), Alhaji Gbadebo Olatokunbo, said the market is always the reflectors of every nation’s economic indicators and since we are in recession, we couldn’t have performed better. He noted, however, that we may be on the way out of the woods.
To Mr. Adeniyi Adebisi of Independent Shareholders Association of Nigeria (ISAN), the stock market has lived up to its major characteristic of price fluctuation, noting that in 2016 the market experienced more of ‘downs’ than ‘ups.’
“This is the year the retail or small scale shareholders qualify more to be described as an endangered specie. We have had more sellers than purchasers of shares thereby depleting the ranks of this vibrant class of players in the capital market. There has been nothing of note to persuade big and foreign investors to come back to the market since the collapse that followed the pre and post 2008 boom,” Adebisi said.
- This Day