NSE Extends Decline on Tuesday, Loses N656bn

• NSE Extends Decline on Tuesday, Loses N656bn

The Nigerian Stock Exchange (NSE) declined further on Tuesday as investors sold off their positions amid growing global uncertainty.

The exchange declined on Monday by 2.41 percent to close at N13.365 trillion following a 30 percent plunged in global oil prices.

This continues on Tuesday, erasing N656 billion from the market capitalisation of listed equities to N12.709 trillion, down from N13.365 trillion it closed on Monday. NSE All-Share Index declined by 591 basis points or 4.91 percent from 25,647.54 bps on Monday to 24,388.66 bps on Tuesday.

Total shares of 594.5 million shares were exchanged in 4,010 deals during the trading hours. The premium board was the most active on Tuesday with 368.6 million shares traded in 1,804 deals, largely driven by the surged in the activities of the United Bank for Africa Plc and FBN Holdings Plc.

Improved activities in the shares of Fidelity Bank Plc and Guaranty Trust Bank Plc boosted the banking sector with a turnover of 106.5 million shares exchanged in 693 deals.

Investors were scared the Central Bank of Nigeria would devalue the Naira amid weak foreign reserves, low revenue generation and weak oil prices. The surged in market risk level created uncertainty that led to a selloff as the investors look to curb risk exposure.