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Nigerian equity market plunges to two year low

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The Nigerian Stock Exchange
The Nigerian Stock Exchange

The Nigerian Stock Exchange continued to slide, recording its worst performance in two years on Wednesday.

The bourse shed -3.46 per cent, which was the highest loss it has suffered since 2016, sinking the All Share Index (ASI) to 32,292.79 points, on the back of losses recorded in medium and large capitalized stocks as investors engaged in sell-off.

The exchange had 10 gainers against 37 losers as market Capitalization was down by N422.17 billion, representing a decrease of 3.46 per cent, closing at N11.79 trillion.

Universal Insurance Company PLC led the losers chart, shedding -10 per cent,  Cement Company of Northern Nigeria PLC (CCNN)  trailed it with -9.87 per cent decline and was closely followed by Fidelity Bank, which was down -9.58 per cent and Access Bank -8.57 per cent. Other losers were Honey Flour (-8.55%); FBN Holdings (-7.95%); Flour Mill (-7.91%), etc.

On the other hand, Law Union & Rock Insurance PLC emerged the top gainer of the day, appreciating 9.09 per cent, while Skye Bank and Jaiz Bank followed with 8.93 per cent and 6 per cent rise.

The Nigerian bourse, which posted 42.3 per cent return in 2017, has declined -17.89 per cent in the last six months and -7.31 per cent year-to-date.

Analysts believe the downtrend would continue till after the 2019 general elections as investors are worried on the impact of the elections on the country’s economy.