Nigerian Exchange Stumbles as Inflation Soars to 26.72%, Investors Lose N89 Billion

The Nigerian Exchange Limited closed in the red on Monday as investors lost N89 billion following a disappointing inflation report.

The National Bureau of Statistics (NBS) reported that the consumer price index which measures the inflation rate at a certain period rose to a record 26.72% in September.

This was a 0.92% increase when compared to the previous month’s figure of 25.80%.

The data disclosed by the NBS painted a worrying picture of the nation’s economic landscape. Among the key factors driving this surge were food and non-alcoholic beverages, housing, water, electricity, gas, and other fuel, alongside clothing and footwear, with transport, all contributing at rates of 13.84%, 4.47%, 2.04%, and 1.74%, respectively.

This inflation shockwave became the focal point for investors throughout the week, closely accompanied by the anticipation of third-quarter earnings reports from companies listed on the exchange.

The market experienced a collective shudder as both the All-Share Index and market capitalization plummeted by 0.24% to close at 67,037.93 basis points and N36.830 trillion, respectively. Investor sentiment took a hit with 19 gainers and 23 losers.

Notable gainers during this tumultuous period included NASCON Allied Industries, Flour Mill, Dangote Sugar, United Bank for Africa, and Unilever. In contrast, Stanbic IBTC, Oando, Eterna, Cadbury, and Okomu Oil faced substantial losses.

These events have sparked concern among experts, with Professor Uche Uwaleke, a prominent figure in the capital market, highlighting the need to address the inflation surge.

He emphasized its detrimental impact on purchasing power, poverty levels, and the increasing dollarization of the Nigerian economy, all while exacerbating pressure on the forex market.

As the week progresses, investors remain on high alert, hoping for signs of a more stable financial climate.