Home » Nigeria: panic on the stock market, 1.3 billion lost

Nigeria: panic on the stock market, 1.3 billion lost

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by: Andrea Spinelli Barrile | February 27, 2024

Last week was marked by a wave of panic in the Nigerian stock market, with investors losing almost 2 trillion naira ($1.33 billion). The Nigerian Stock Exchange (NGX) saw its value collapse by 3.44%, closing at 102,088.30 points, compared to 105,722.78 points at the beginning of the week. Agence Ecofin reports it.

The decline is attributed to a wave of selling by investors seeking to capitalize on recent gains, following a period of sustained market growth, and reflects a strategy to secure profits in the face of growing economic uncertainty. As a crucial barometer of the country’s economic health, the Nigerian Stock Exchange serves as a mirror reflecting investors’ confidence in future prospects: this fall therefore raises legitimate concerns about its repercussions on a Nigerian economy already weakened by multiple challenges.

Not all sectors have been affected equally. Some, such as consumer goods and energy, have shown encouraging growth, indicating the presence of development opportunities in specific niches. The insurance and industrial goods sectors performed the worst. The week also saw a slowdown in trading volume, with 1.377 billion shares traded, down from the previous week: the financial services sector dominated activity, followed by conglomerates and the oil and gas industry, highlighting the areas where investors are focusing their interests.

This decline can also be interpreted as a natural adjustment after a period of earnings, with a redistribution of investments towards sectors deemed safer or more promising.

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