AFRICA ( commonwealth Union ) _ The Nigerian Exchange Limited lost N313 billion, dropping to N29.915 trillion, less than a month after reaching a market value of N30 trillion. The market cap decreased by 1.04 percent, matching the All Share Index’s decline of 574.59 basis points to close at 54.915.61 in percentage terms. A total of 3,489 transactions totaling 137,286,570 shares worth N1.509 billion were made on the exchange.
Since Monday, the stock market has been in a downward trend as investors have continued to experience losses. The loss of N313 billion, however, was the most for the week. Tunde Amolegbe, the chief executive officer of Arthur Stevens Assets Management, responded to the market trend by citing a number causes, including anxiety over the upcoming election period and the recently revealed inflation figure of 21.91 percent for February 2023.
On the strength of the significant increases we’ve seen since the year’s beginning, profit-taking, he continued, “continues. In light of newly disclosed inflation figures, investors appear to be reviewing their positions. It is anticipated that the MPC may further tighten monetary policy as a result at its upcoming meeting.
“Traditional jitters associated with Nigerian election seasons may possibly have a role. We cannot completely rule out the possibility that the Central Bank of Nigeria’s poorly executed demonetisation policy had an adverse effect on company profitability in the first quarter of the year. Next month, those outcomes will start to hit the market.
We cannot rule out the chilling effect that recent events in the international banking sector could have on those who are still in our market, despite the recent decline in FPIs (Foreign Portfolio Investments) participation; I’m referring to the failure of Silicon Valley Bank and similar institutions.
