Some capital market operators on Monday allayed investors’ fears on the current downward swing in listed equities on the nation’s bourse.
They told the News Agency of Nigeria (NAN) in separate interviews in Lagos that the swing being experienced in the market was not a sign of crash, but a normal trend in any developed market.
Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., attributed the trend to the exit of foreign investors who were the major players in the market.
Kurfi said that foreign investors were off loading their holdings in the market because of the development at the foreign exchange market.
He said that the investors were not comfortable with the continuous depreciation of the naira and the depletion of external reserves.
According to him, the investors are skeptical that the naira can be devalued on the long run if the Central Bank of Nigeria (CBN) can no longer protect it.
Mr Sunny Nwosu, the National Coordinator, Independent Shareholders Association of Nigeria, attributed the development to profit taking by some investors.
NAN reports that the All-Share Index dropped by 606.42 points or 1.53 per cent last week to close at 38,952.47 against 39,558.89 posted in the previous week.
Also, the market capitalisation lost N195 billion or 1.93 per cent to close at N12.512 trillion compared with N12.707 trillion achieved in the preceding week due to price losses.
A total of 2.15 billion shares worth N18.49 billion were recorded in 22,697 deals last week against 1.81 billion shares valued at N26.69 billion exchanged in 25,342 deals in the preceding week.
The financial services led the activity chart with 1.72 billion shares valued at N11.15 billion in 12,303 deals.
The conglomerates sector followed with a turnover of 236.71 million shares worth N1.05 billion achieved in 1,773 deals.
The consumer goods sector had 52.82 million shares worth N3.49 billion traded in 3,664 deals.
The NSE All-Share Index and market capitalisation depreciated by 1.53 per cent to close on Friday at 38,952.47 and N12.512 trillion, respectively.
Forte Oil recorded the highest price gain for the week, appreciating by 17.65 per cent or N15.60 to close at N104.00 per share.
IPWA followed with a gain of 13.46 per cent or 7k to close at 59k, while Chams rose by 12 per cent or 6k to close at 56k per share.
On the contrary, Academy Press led the losers’ table for the week in percentage terms, declining by 13.57 per cent or 27k to close at N1.72 per share.
Guinness Nigeria dropped 13.22 per cent or N26.17 to close at N171.73, while Wema Bank declined by 10.43 per cent or 12k to close at N1.03 per share.