As market index rises 0.07 per cent
Stock market investors have lost over N1.8trillion in two months after the first case of Coronavirus (COVID-19), was confirmed in Nigeria on February 27.
Specifically, the market capitalisation of listed equities, which stood at N13.657trillion as at Friday, February 28, depreciated by N1.8trillion to N11.786trillion yesterday, while the All-share index, which measures the performance of quoted companies closed at 22,616.28 down from 26,216.46 representing 3,600.18 points drop or 15.9 per cent drop.
This comes as the market resumed activities for the week on a positive note, as price appreciation in MTN Nigeria and seven other stocks buoyed Nigerian equities market performance, causing the All-Share Index (ASI) to advance by 0.07 per cent.
Yesterday, ASI increased by 16.90 absolute points, representing a growth of 0.07 per cent to close at 22,616.28 points. Similarly, the market capitalisation increased by N9 billion to close at N11.787 trillion.
Since the virus was imported into the country, the number of active COVID-19 cases in Nigeria has continued to surge, with more people testing positive, bringing the total number of confirmed cases above the 1,273 mark at the time of filing this report on Monday.
The global pandemic’s impact on the economy is far more significant, and with oil demand dropping to record lows in the wake of the outbreak, Nigerian economy is being caught in the cross hairs.
Basically, with oil as Nigeria’s biggest revenue earner, the government relies heavily on the resource for dollar earnings to fund its national budget.
With the lockdown leading to the shutdown of industries and businesses, many companies will be unable to pay salaries, a situation that will affect purchasing power among Nigerians, leading to supply and demand shocks
More so, the Central Bank of Nigeria (CBN) recent devaluation of the Naira to N380/$, coupled with other perennial issues hitherto bedevilling the local bourse have eroded investors’ confidence in the market.
