Nigerian Stock Market loses N370bn on Tuesday

Nigerian Stock Market loses N370bn on Tuesday

The Nigerian Stock Exchange (NSE) on Tuesday sustained seven-day falling streak with the market capitalisation shedding N370 billion in one day.

The News Agency of Nigeria (NAN) reports that the market capitalisation lost N370 billion or 2.41 per cent to close at N14.967 trillion against N15.337 trillion achieved on Monday.

Similarly, the All-Share Index which opened at 42,737.89 lost 1,029.74 points or 2.41 per cent to close at 41,708.15 following huge losses by some highly capitalised stocks.

Some financial experts in an interview with NAN attributed the persistent loss to decline in global stock markets, especially in the U.S. and Europe, contributed to the bearish trend in the market.

Dr Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University Keffi, said investors reactions to the global stock market trend led to sell pressure on the exchange.

Uwaleke said the drop in crude oil price following increased supply and profit-taking by investors in respect of over-priced stocks, particularly those of tier 11 banks contributed to the development.

He said a relative uptick in returns from money market securities led to movement of funds from the capital market to the money market securities.

Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun said the bearish trend was expected because the stock market usually reacted to economic conditions.

NAN

Nigerian Online Newspaper=


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