Investors’ divestments cost stock market N1.8tr in six months

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Guardianng June 23, 2021 4:28 a.m.

Investors’ divestments cost stock market N1.8tr in six months

Transnational Corporation of Nigeria (Transcorp) was the toast of investors during the day exchanging 42.441 million shares valued at N37.208 million, Vitafoam Nigeria Plc followed with an account of 20.131 million shares cost N271.570 million, Dangote Sugar Refinery traded 17.633 million shares cost N312.104 million FBNHoldings exchanged 12.391 million shares valued at N88.456 million while Access Bank sold 11.516 million shares worth N98.378 million.

Until we get it right in this country, the economy will not improve.” At the close of transactions yesterday, the market capitalisation of listed equities declined by 1.81 per cent to N19.725 trillion from N20.089 trillion it opened on Monday, while the All-Share Index also depreciated by 698.23 basis points to 37847.07 points from 38545.30 points traded the previous day.

The market capitalisation which stood at N21.515 trillion as at January 5, 2021, when the market reopened for transactions for the year, dropped to N19.725 trillion as at close of trading on yesterday, representing N1.8 trillion loss while the All-Share Index plunged by 3,300.32 points or 9.0 per cent from 41,147.39 to 37,847.07.

…Experts worry over persistent migration of fund from stock market The continuous exit of funds from the equities market to another investment instrument, especially the fixed income segment has become a source of worry to capital market stakeholders, as they urged the Federal Government to tackle growing security challenges in Nigeria.

The stakeholders argued that insecurity problem in Nigeria has increased investors’ apathy in the stock market as they prefer to stake their funds in the fixed market where there is some stability.

Investors exchanged 218.271 million shares valued at N2.725 billion in 3524 deals against 209.212 million shares valued at N1.763 billion in 3390 deals.

Fidson Healthcare emerged as the day’s highest price gainer with 10.0 per cent to close at N5.06 kobo while Vitafoam Nigeria followed with a gain of 9.68 per cent to close at N13.60 kobo.

For instance, if the interest rate is 10 per cent, you work on that and expect the 10 per cent gain, which is fixed than the capital market, which you are not sure about.

This money is investors’ money and not the regulators.” The President of Ibadan Zone shareholders Association, Eric Akinduro said since investment in shares is not immune from what is happening within the economy, investors have to access more stable instruments where the safety of investment is guaranteed..

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