In April, the NGX All-Share Index experienced a significant decline, resulting in investors losing N3.57 trillion in market value.
This marks the first monthly decline for the NGX this year, following gains of 17.7%, 12.47%, and 5.64% recorded in January, February, and March, respectively. Despite the setback, the NGX still maintains a year-to-date increase of 31.36%.
Various policy announcements from the Central Bank of Nigeria (CBN) influenced the sharp drop in the index. Particularly noteworthy was the announcement of a recapitalization plan for commercial banks aimed at raising an estimated N4 trillion in fresh capital over the next two years.
Additionally, the CBN’s significant rate hike led to intensified sell-offs, resulting in a 6% decline in the local bourse, with the benchmark index closing at 98,225.63 points.
The higher interest rates prompted investors to shift trillions of naira from the stock market to the fixed-income market, where they could seek out higher yields.
As a result of these developments, the NGX All-Share Index fell below the 100,000-point threshold, ending the month at 98,225.63 points, a notable contrast to its peak of 104,562.06 points at the end of March 2024.
