The lull in the capital market has cost investors in the Nigeria Stock Exchange, NSE, a staggering N1.24 trillion in four months of 2016.
The market capitalization slid by N1.24 trillion to close at N8.62 trillion on April 29, 2016, when compared with the N9.86 trillion at which it opened trading on January 4, 2016.
Similarly, the All-Share Index shed 12.5 per cent to close at 25,062.41 basis points from the 28,642.25 basis points it opened for the year.
The NSE market indices across the board closed negative, a reflection of an struggling economy, increased inflation and federal government 2016 budget delay.The factors above have impinged listed companies’ share prices which attributed to decline revenue and hike in operating expenses that led to poor profits in the first quarter of 2016 unaudited accounts.
Stakeholders have attributed the dwindling capital market to continued profit taking, most especially from foreign portfolio investors, the Central Bank of Nigeria (CBN)’s unstable monetary policies and global dwindling oil prices that has affected listed oil & gas companies. They, however, expressed optimism that the passage of the 2016 budget would spur liquidity in the economy, an action that would enhance the economy and boost the stock market in particular.