Nigeria: All-Share Index Falls Below 27,000 Threshold As Market Sustains Losses

The Nigerian Stock Exchange (NSE) All-Share Index (ASE) fell below the 27,000 threshold to 26,925.29 last week following the free-fall the stock market has been experiencing.

The continued bear run pushed the NSE ASI down by 1.40 per cent, while market capitalisation shed N185.9 billion to close at N13.121 trillion last week in three days, due to a two-day holiday declared by the federal government of Nigeria to mark the Eid-El-Kabir celebrations.

Performance across sectors was bearish led by the NSE Consumer Goods Index that fell 6.6 per cent, trailed by the NSE Industrial Goods Index with 4.2 per cent. The NSE Oil & Gas Index went down by 1.9 per cent, just as the NSE Banking Indices closed 1.1 per cent lower.

One major event in the market last week was the visit of Governor of Ekiti State, Dr. Kayode Fayemi to the NSE. Welcoming, the governor, the Chief Executive Officer of NSE, Mr. Oscar Onyema, said the exchange was ready to partner the state to have access to capital to build a sustainable economy for the state.

"Your strategies towards revitalising the agricultural, manufacturing, mining, trade and tourism sectors, which together account for 75 per cent of the state’s gross domestic product (GDP) are also commendable.

"For instance, you have increased the proportion of capital spending in the 2019 budget to 44 per cent from 31 per cent in 2018; and channelled budgetary resources towards pro-growth projects in these sectors such as the: development of a land bank for the state; establishment of one-stop investment promotion centre and enterprise zone industrial clusters; widespread road constructions, electrification and ICT infrastructure; as well as rehabilitation of Fountain Hotels and commencement of an Ekiti State Airport project," Onyema said.

He noted that at the NSE, "we recognise that to build a sustainable economy for the estimated 3.5 million citizens of Ekiti State, supported by vibrant sectors, both state-owned and private sector enterprises will require access to right-sized capital."

"We have been longstanding partners with Ekiti State in accessing such capital. Your Excellency would recall that during your previous term in office between 2010 and 2014, The exchange supported the issuance and listing of the N20 billion Fixed Rate Infrastructure Development Bond, which financed a number of projects including the Ikogosi warm spring redevelopment, the Ekiti Water Works construction, as well as the refinancing of high-interest borrowings by the state.

"In that time frame, the Ekiti economy expanded by […]

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