The value of listed equities on the Nigerian Stock Exchange (NSE) dipped by N1.08 trillion in July, amid national economic uncertainties.
Statistics from the NSE for the period under review showed that the market capitalisation lost N1.08 trillion to close the month at N10.344 trillion against N11.421 trillion posted in June.
Also, the All-Share Index decreased by 3276.56 points or 9.79 per cent to close the month at 30,180.27 against 33,456.83 posted in June.
About 6.19 billion shares worth N85.41 billion were exchanged by investors in 73,942 deals during the period.
This was against the 6.11 billion shares valued N101.72 billion transacted in 83,675 deals in June.
The financial services sector remained the toast of investors during the period, accounting for 4.47 billion shares worth N51.07 billion traded in 40,985 deals.
It was trailed by oil and gas sector with 394.31 million shares valued N6.77 billion achieved in 7,265 deals, while conglomerates sector accounted for 258.25 million shares worth N1.49 billion in 3,931 deals.
Some stakeholders attributed the decline in the market growth during the period to lack of economic blueprint and tight monetary policy of the Central Bank of Nigeria (CBN).
They told said in Lagos that the development led to redirection of funds from the equities market.
Mr Sehinde Adenagbe, the Managing Director, Standard Union Securities Ltd., attributed the loss to lack of economic direction and inactivity in the economy.
Adenagbe said that the market was waiting for policy statement from government that would reinvigorate confidence and activity in the economy.
He said that uncertainties surrounding the new government economic agenda affected investors confidence in the market and the economy during the period under review.
Mr Olaleye Williams, the Managing Director, GlobalView Consult & Investment Ltd., said that the Federal Government should expedite action on the release of economic blueprint and ministerial appointees.
Williams said that uncertainties surrounding policy direction of the new government was the major challenge of the market which led to “wait and see” attitude by investors.
He said that impressive half year results released by some companies failed to impact on the market due to economic uncertainties and persistent drop of naira at the foreign exchange market.
He said that local and foreign investors were aware of investment opportunities in the country but needed some measure of certainty to the new government economic agenda.
