Nigerian stock market investors lose N91bn in September as bearish trend persists

As trading ended in September, investors in Nigeria’s equities market recorded an N91 billion decline in the value of their investments as the market dropped by 0.25 percent following sessions of profit-taking after the August rally.

According to available statistics in the Eight months before September, the market’s positive return stood lower at +29.52 percent.

The market, which had started September with All-Share Index (ASI) and equities market capitalization at 66,548.99 points and N36.422 trillion, respectively, dropped to 66,382.14 points and N36.331 trillion as of Friday, September 29, the last trading day of the month.

It represented a drop in the market capitalization by N36.38 billion from N36.47 trillion to N36.33 trillion at the close of trading on Friday.

Similarly, the All-Share Index fell by 66.49 basis points to close at 66,382.14, down from 66,448.63 ASI achieved by the stock market on Thursday.

On Friday, investors traded 292.94 billion shares valued at N4.53 billion in 6,323 deals.

It surpassed the 273.79 million shares worth N3.41 billion traded by shareholders in 6,826 deals the previous day.

The negative close in September came despite expectations of investors positioning in value stocks ahead of qualification for their half-year (H1) interim dividend.

In the review trading month, more investors were mostly cautious of the nation’s macroeconomic outlook, particularly fluctuations in the foreign exchange (FX) market, which directly affect foreign stock investments.

“With bearish sessions dominating this Month, the market lost 0.25 percent, compared to the 3.44 percent return in August.

“With no positive driver in the market, we anticipate similar mixed trading sessions next week, as investors begin to look forward to the third quarter (Q3) earnings report,” according to Lagos-based analysts at Vetiva Research.

Meanwhile, the value of investments in the Nigerian capital market depreciated and dipped by 0.10 percent on Friday’s last trading day of the Month.

“With no positive driver in the market, we anticipate similar mixed trading sessions next week, as investors begin to look forward to the third quarter (Q3) earnings report,” according to the analysts.