NSE Investors Lose N425m on Wednesday

• NSE Investors Lose N425m on Wednesday

The Nigerian Stock Exchange (NSE) declined further on Wednesday as market rout continues amid fast-spreading coronavirus.

The market capitalisation of listed equities depreciated by N425 billion from N12.709 trillion it closed on Tuesday to N12.284 trillion on Wednesday.

While the NSE All-Share Index declined by 815.91 basis points or 3.35 percent from 24,3888.66 recorded on Tuesday to close at 23,572.75 on Wednesday.

Growing global uncertainty continues to dictate the direction of the local market as investors fear falling foreign reserves amid weak global oil prices would compel the Central Bank of Nigeria to devalue the Nigerian Naira by at least 10 percent to curb the further decline in reserves.

This was after a report that the largest economy in Africa could not find buyers for its crude oil, leaving around 70 percent of its cargoes without buyers. Low oil prices coupled with the inability to sell despite huge discounts being offered by the government due to slowing growth in most of the nation’s trading partners is the reason investors are predicting devaluation by the third quarter of 2020.

On Wednesday, Chams Plc and Courtiville Business Solution Plc led top gainers with 10 percent each while FCMB and Unilever Nigeria Plc gained 9.93 percent and 9.91 percent to at N1.66 and N11.65 per share, respectively.

Dangote Cement and Nestle Nigeria led top losers with a 10 percent decline each to at N153 and N915.30 per share. Sterling Bank Plc trailed them with a decline of 9.93 percent to close at N1.27 per share while Conoil Plc dipped by 9.88 percent to N14.60 per share.

Since brent crude oil declined by 30 percent on Monday, the Nigerian Stock Exchange has depreciated by a combined N1.4 trillion in the last three days. The bourse lost N329.39 billion on Monday; N656 billion on Tuesday and N425 billion on Wednesday.

“The effect of the coronavirus is gradually affecting trading all over the world and whatever happens elsewhere reflects in our market. The centre of it all is China and being a major world power both in productive and consumption capacities, any ill wind affecting China would naturally cause a big sneezing to the rest of world,” stated Chief Oyinyechukwu Ezeagu.