How equities market investors lost N1.87trn in 4 days -

Temitope Adebayo

The Nigerian Stock Exchange (NSE) has lost N1.87 trillion to global oil price crash and increasing spread of COVID-19 in four days.

Specifically, the market capitalisation, which opened trading for the week at N13.694 trillion, shed N1.87 trillion or 13.63 per cent, having closed trading on Thursday at N11.827 trillion.

Also, the All-Share Index, which opened the week at 26, 279.61 basis points, dropped 3,583.73 basis points or 13.64 per cent in four days to close trading on Thursday at 22,695.88 basis points.

The Acting Director-General of the Securities and Exchange Commission (SEC), Ms Mary Uduk had said the global decline in oil prices and the outbreak of coronavirus will affect the country’s capital market.

According to her, our capital market is global so, whatever it is that will affect any other country of the world right now will affect the Nigerian Capital market, the oil, because it is one global entity.

The acting director-general, who regretted that the country’s 2020 budget had been threatened by the fall in the price, said that concerted efforts were required to tackle the issue.

“This thing is everywhere and our capital market is global just like any other capital market.

“You will recall that the other day in New York, they had to shorten the period of trading because of the amount of losses.

“Whatever it is that will affect any other country of the world right now will affect the Nigerian Capital market, the oil, and the coronavirus.

“It is one global entity; it is a global thing, so it will affect all the markets.

“In CBN now, the government has convened a conference that is looking at how these things are affecting the economy of Nigeria and you know that the budget 2020 is already seriously threatened because the benchmark was at N57 but now, oil price has gone down.

“It is a serious thing, so all of us need to sit down and say what can we do, it is not just one sector, it has to be concerted efforts by all.

However, an analysis of trading on Thursday shows that MTN Nigeria recorded the highest loss to lead the losers’ chart, declining by N10.30 to close at N93.20 per share.

Okomu Oil trailed with a loss of N6.10 to close at N55.30, while Presco was down by N4.45 to close at N40.45 per share.

Nigerian Breweries dipped N3.30 to close at N29.70, while Flour Mill dropped N2.20 to close at N19.80 per share.

On the other hand, only three stocks posted price appreciation and this was led by Stanbic IBTC which garnered 95k to close at N29.30 per share.

Skyways Aviation Handling Company followed with 23k to close at N2.57, while Caverton gained 21k to close at N2.31 per share.

Zenith Bank was the toast of investors inactivity chart, accounting for 433.157 million shares worth N4.70 billion.

United Bank for Africa followed with an account of 371.34 million shares valued at N2.09 billion, while Guaranty Trust Bank traded 62.18 million shares worth N1.14 billion.

FBN Holdings exchanged 31.95 million shares valued at N128.21 million, while Wapic Insurance sold 20.64 million shares worth N5.79 million. In all, investors traded 1.06 billion shares valued at N9.81 billion in 5,501 deals.

This was against a turnover of 1.39 billion shares worth N17.65 billion transacted in 7,150 deals on Wednesday.