Despite last minute window dressing on the Nigerian Stock Exchange (NSE), Wednesday, equity investors would likely rank the month of November as one in which the value of their investment suffered perhaps the deepest cut in recent times.
Market capitalisation, which measures the total value of all companies whose shares are traded on the exchange, slumped by N660.357 billion, reminiscent of the months just after the 2009-2011 financial crisis that led to the nationalisation of three Nigerian banks. This, it would be recalled, resulted in serious loss of confidence, as most banks were negatively impacted by over exposure to the oil price crash and the capital market, among others.
The benchmark All Share Index, which guages the average performance of stocks listed on the bourse, lost 1,978.46 basis points or 7.26%. The index closed at 25,241.63 points, from 27,220.09 at the end of October, while capitalisation fell by 7.06% to N8.689 trillion from N9.349 trillion within the review period.
Analysts noted on Wednesday that the index hit a high of 27,592.42, during the month before succumbing to pressure, touching a low of 25,188.20 in the process and then closing relatively better at month end.
“In the history of the year 2016, November is the second most bearish month after January (when the market lost 16.50),” a market analyst recalled.
All the sectoral indices closed red expectedly, led by the 17.57% slide in the NSE oil&gas; followed by Premium board with 10.77% slump; while NSE Pension index caved by 5.22%. The NSE mainboard was down 5.12%; NSE Banking index, 4.66%; NSE30, 4.35%; NSE Insurance, 3.87%; and NSE Consumer Goods, 1.11% during the month.