The Nigerian Stock Exchange market has recorded a huge loss within a very short period of time which spells doom.
The downward trend in the Nigerian stock market is showing no sign of abating any time soon as the market capitalisation has continued to fall, with 10 out of the 12 indices currently on the decline according to the Punch.
The market capitalisation of the Nigerian Stock Exchange fell by N811bn from the first trading day of this year till Friday date despite the gains recorded in the market last week, when 40 equities gained and 21 others declined. Similarly, 10 out of the 12 market indices are also in the red.
Market capitalisation is the total market value of the shares outstanding of a publicly traded company.
The NSE market capitalisation dropped from N9.75tn on January 4, 2016 to N8.939tn on Friday, while the All-Share Index also closed at 25,988.40 basis points from the 28,643.67 basis points recorded on the first trading day of the year.
Investors made huge losses in the Nigerian equities market last year as the market capitalisation (equities only) of the NSE shed a total of N2.354tn between December 2014 and December 2015.
In the first seven trading days of this year, equity investors in the country’s capital market lost N804tn of their investments’ worth.
The market capitalisation, which was N9.75 on January 4, depreciated to N8.95tn after seven days of trading.
The NSE currently has 10 out of its 12 market indices in red when compared to the performance of the market this time last year. This represents about 83.33 per cent fall year-to-date.
The NSE All-Share Index, Premium Index, Main Board Index, 30 Index, Banking Index, Insurance Index, Consumer Goods Index, Lotus II Index, Industrial Goods Index and Pension Index closed negative year-to-date as of the last trading day.