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The market indices at the Nigerian Stock Exchange
(NSE) closed downward in the trading week ended 7th February, 2020. The bearish
market recorded a decline in the All-Share Index (ASI) and market
capitalization index by 2.69% and 1.61%, closing at 28,067.09 points and
N14.618 trillion respectively1. All other market indices depreciated with the
exception of the NSE Insurance and NSE Alternative Securities Market (ASeM)
Index. The worst hit were the NSE Industrial Good Index and NSE-Meristem Value
Index which declined by 4.07% and 3.94% respectively. Significant losses were
recorded in both medium and large capitalized stocks such as MTN Nigeria and
Nestle Nigeria. Given the global economic slowdown due to the coronavirus
outbreak as well as banks reluctance in lending to the real sector, the NSE
market is expected to continue on a downward trend. While investors are advised
to take advantage of the lower price of equities by purchasing shares of listed
companies, the Securities Exchange Commission should adopt more robust and
strong regulations, specifically the recapitalization of capital market
operators. This will strengthen the resilience of operators and ensure that
Nigeria’s capital market is globally competitive.
Source of original article: CSEA AFRICA – CENTRE FOR THE STUDY OF THE ECONOMIES OF AFRICA (cseaafrica.org).
The content of this article does not necessarily reflect the views or opinion of Global Diaspora News (www.GlobalDiasporaNews.com).
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