Nigerian Stock Exchange Sheds N188b on Monday

• Nigerian Stock Exchange Sheds N188b on Monday

The Nigerian Stock Exchange (NSE) lost N188 billion on Monday despite closing in the green last week.

The NSE appreciated by 2 percent to close at N13.071 trillion on Friday following the Central Bank of Nigeria’s directive restricting individuals and local banks from participation in Open Market Operations (OMO) auctions.

On Monday, the market capitalisation of listed equities dropped to N12.883 trillion from the N13.071 it closed on Friday.

While the NSE All-Share Index declined by 0.60 percent to 26,691.09 basis points as investors pulled back amid disappointing Consumer Price Index report that shows inflation rose to 11.61 percent, the second consecutive increase since President Muhammadu Buhari closed the Nigerian land borders in August.

With the prices of food items rising due to the surge in demand for insufficient locally produced food items, the headline inflation may continue to increase until a permanent solution is reached with neighbouring countries on the country’s land borders.

This has increased the uncertainty surrounding President Muhammadu Buhari’s economic policy and further worsen its unpredictable nature.

Activity level declined as 307.961 million shares worth N2.539 billion in 4,609 transactions were exchanged during trading hours, representing a 52.6 percent and 120 percent decline in volume and value traded, respectively.

A sectoral breakdown shows only banking and the oil and gas sector recorded losses.

The bourse closed with 16 gainers led by Neimeth Pharmaceutical Company Plc, Jaiz Bank Plc, Ikeja Hotel Plc, Custodian Insurance Plc and Courteville Business Solutions Plc, with 10 percent, 9.86 percent, 9.47 percent, 9.09 percent and 8.70 percent gain, respectively.