Nigerian Stock Exchange Dips N27.4 bn

• Nigerian Stock Exchange Dips N27.4 bn in September

The Nigerian stock exchange market declined by N274 billion in the month of September to N9.733 trillion from N9.760 trillion.

Investment in the market has dropped by 1.1 percent Year to Date, YtD, while the gauge of the market declined by 0.3 percent to close at 28,335.40 points from 28,419.92 points at the beginning of the trading month.

Mr. Mustapha Chike-Obi, former boss of Asset Management Corporation of Nigeria, AMCON said it is a liquidity issue that the market currently trades about ten million dollars’ worth of securities daily but has the capacity to do more.

He further stated that the issue of liquidity must be addressed to record substantial growth in the Capital market.

“There is need to look inward and that the Government must begin to address those things that impede growth,” he added.

Accordingly, the bond market closed on a bearish note last week as profit taking along the yield curve pulled yields lower.

However, some traders have said the increase in demand for blue chip companies will likely boost the attractiveness of the market this week.

“This week we expect to see mixed signals with positive sentiments driven by a rally in oil prices, while other investors book profits in order to bid at the PMA on Wednesday.”

“The economy is going through recession, it is normal for the stock exchange market to respond likewise, but as soon as a series of measures put in place by the CBN and FG crystallized, and OPEC go through with the proposed production cut in November. The economy should record some progress and ease up,” said Samed Olukoya, a foreign exchange research analyst at Investors King Ltd.