The market capitalization of equities listed on the Nigerian Stock Exchange fell by N457bn in July as bearish sentiments continued to put pressure on the bourse’s performance.
The nation’s stock market has been wobbling in recent months, with the market capitalization losing N1.146tn in May as it fell to N13.802tn.
The market capitalization, which rose slightly to N13.866tn at the end of trading in June, fell to N13.409tn on Tuesday, July 31.
The All-Share Index of the NSE fell to 37,017.78 basis points on July 31 from 37,946.92bps at which it closed in June.
Seventeen companies, lead by Equity Assurance Plc, gained at the end of closing on Tuesday, while 24 recorded losses, with Diamond Bank Plc leading the pack.
The Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said, “Bear market dispels the correlation between oil prices and equities. Nigeria’s volatility, uncertainty, complexity and ambiguity weighed on foreign investors’ sentiments, resulting in capital flows reversal.”
He noted that the rise in the United States’ interest rate was putting pressure on the performance of the stock market.
