As Nigeria prepares for its general elections next year, the uncertainty surrounding its political economic climate has taken a heavy toll on its stock exchange. Foreign portfolio investors have withdrawn more than $400 billion from the Nigerian Stock Exchange between January and July this year, a larger amount than N236.32bn in the same period in 2017.
“Once there is any cause to fear, portfolio investors sell out their shares and they come back when the environment is better; all of these create a lot of volatility in the market and may be one of the reasons why we do not have a lot of initial public offerings in the country,” the Associate Director, Capital Markets, PwC Nigeria, Alice Tomdio, told the Punch newspaper correspondents this morning. Analysts say the ratio of Foreign investors to Domestic Investors in the country is still healthy, and hence there is no cause for concerns yet.
The Nigerian Stock Exchange was one of the top 5 best-performing stock markets in the world in 2017 but has lost some of that value in six months.
Below is the Ventures Africa Weekly Economic Index, for the week ending 21st of September 2018. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange (NSE), as of 21st September 2018, showed that the All-Share Index appreciated by 0.66 percent from the previous week ending 14th September 2018. Market capitalization at the close of trading during the week under review was N11.880 trillion, a 0.66 percent increase from N11.802 trillion recorded the previous week. The All Share-Index for the week under review closed at N32,540.17
Top five price gainers and decliners in the week under review:
Top five price gainers
Union Diagnostic & Clinical Services Plc.
First Aluminium Nigeria Plc.
Forte Oil Plc.
Regency Assurance Plc.
U A C N Plc
Top five price decliners
Standard Alliance Insurance Plc
Axamansard Insurance Plc
Red Star Express Plc
Cornerstone Insurance Plc.
John Holt Plc
How did the Naira fare?
The Naira appreciated from the 362.78 Naira recorded two weeks ago to 361.32 Naira to a dollar.
How did the prices of oil fare?
Brent oil prices rose by a dollar between 14th September and 21st September from $78.09 to $79.59. Already, Brent oil prices hit $81 per barrel this morning 24th September 2018, its highest price in four years. Analysts say oil prices might hit $100 per barrel by January 2019 because of the Iran sanctions by the USA. In fact, the only snag preventing Brent oil prices from going higher is the trade wars between China and USA.
