The Nigerian Stock Exchange (NSE) on Tuesday sustained seven-day falling streak with the market capitalisation shedding N370 billion in one day.
The market capitalisation lost N370 billion or 2.41 per cent to close at N14.967 trillion against N15.337 trillion achieved on Monday.
Similarly, the All-Share Index which opened at 42,737.89 lost 1,029.74 points or 2.41 per cent to close at 41,708.15 following huge losses by some highly capitalised stocks.
Some financial experts in an interview with NAN attributed the persistent loss to decline in global stock markets, especially in the U.S. and Europe, contributed to the bearish trend in the market.
Dr Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University Keffi, said investors reactions to the global stock market trend led to sell pressure on the exchange.
Uwaleke said drop in crude oil price following increased supply and profit taking by investors in respect of over-priced stocks, particularly those of tier 11 banks contributed to the development.
He said relative uptick in returns from money market securities led to movement of funds from capital market to the money market securities.
Professor Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun said the bearish trend was expected because the stock market usually reacted to economic conditions.
“This is New Year and the budget is yet to be passed, so money is not yet being released and people need to buy lots of things.
“Fortunately, the market was bullish recently such that the values of shares went up making it possible for profit taking,” he said.
Tella said the bearish trend would bring new opportunities for new investors as well as old ones who would want to adjust their financial portfolio.
He said that these investors would go the market shortly to take advantage of the lower prices of shares.
“We will start seeing bullish activities in the market again.
“It is the nature of the market to facilitate between bullish and bearish swings as dictated by market forces,” he said.
An analysis of the price movement showed that Nestle recorded the highest loss depreciating by N40 to close at N1, 320 per share.
Dangote Cement trailed with a loss of N13.30 to close at N258.70, while Nigerian Breweries dipped N5.20 to close at N127.80 per share.
Guinness was down by N5 to close at N105, while International Breweries depreciated by N2.50 to close at N57.50 per share.
On the other hand, Lafarge Afeica led the gainers’ table growing by N1 to close at N51 per share.
Zenith International Bank followed with a gain of 60k to close at N30, while Berger Paint gained 45k to close at N9.45 per share.
Access Bank increased by 45k to close at N12, while Dangote Sugar Refinery advanced by 30k to close at N21 per share.
The banking sub-sector was the toast of investors with Diamond Bank emerging the most traded, trading 67.69 million shares worth N181.14 million.
FCMB Group followed with an account of 49.22 million shares valued at N126.18 million, while Fidelity Bank sold 42.78 million shares worth N129.55 million.
United Bank for Africa traded 39.16 million shares valued at N437.59 million, while FBN Holdings exchanged 32.59 million shares worth N358.64 million.
In all, the volume of shares traded closed lower with an exchange of 470.52 million shares valued at N3.68 billion transacted in 6,309 deals.
This was against the 517.44 million shares worth N5.19 billion traded in 5,852 deals on Monday.