February 21, 2020

Nigeria Economic Update (Issue 6)

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‚Äôs capital market is globally competitive. 

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Nigeria Economic Update (Issue 43)

The IMF World Economic Outlook report, indicates a downward revision for Nigerias 2017 economic growth. Specifically, growth has been projected to expand by 0.6 percent relative to the 1.1 percent earlier projected. The decrease is attributable to sharp growth slowdown experienced in Nigeria, occasioned by prevailing constraining factors (crude oil production disruptions, Forex and power shortages, and weak investor confidence). The outlook, which does not seem optimistic, reveals Nigerias further vulnerability to potential external and internal risks/shocks.