Nigerian Stock Market Is Losing Steam
The Nigerian stock market was a toast of investors within the first month of January. As at January 18, the NSE all share index had crossed a record 45,000 points mark.
But it appears to be fast losing steam. As at the close of trading on Monday, the NSE stocks had shed 1.5% on trades to drop to one month low as investors sold off shares from the relatively liquid banking sector.
Market analysts believe the stock market has been hit by a global risk-off sentiment, as the market fell for the sixth straight day to 42,633 points, a level last seen in January.
Investors have been closing local positions on concern that rising global inflation would lead to higher interest rates in developed economies and draw capital away from emerging markets.
However, things are still looking relatively positive as the benchmark index is still up 12.8% so far this year.
But the banking stocks which had been leading gainers’ table is also on a downward spiral.
The index of Nigeria’s top 10 banks declined 3.78% to lead the main index lower. FBN Holdings dropped 5%, while Fidelity Bank and Guaranty Trust Bank fell more than 4.5% each.
Top decliners include Eterna Oil 9.67%. Equity Assurance and Aiico Insurance each down more than 8%.
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