The equities market of the Nigerian Stock Exchange was on a steady decline in the month of August, culminating in the loss of N631bn within the period.
The steady descent in the market, which began towards the end of July, spilled into August, with the market capitalisation of the listed equities falling to N11.496tn on Friday, the last trading day in the month.
This represents a loss of 5.2 per cent or N631tn compared to the N12.127tn recorded at the beginning of the month.
The market capitalisation represents the aggregate value of all the companies or stocks quoted on the Exchange. It is obtained by multiplying the aggregate number of shares outstanding by the current price of each stock.
Similarly, the NSE All-Share Index fell by 5.3 per cent or 2,043.54 basis points to 36,248.53 points on Friday, down from 38,292.07 points recorded on August 1, 2013.
Experts, who spoke to newsmen on Sunday, said the decline was largely as a result of external factors relating to monetary tightening measures.
Activities in the market had reached a peak in June, surpassing the pre-2008 meltdown levels with the All-Share Index hitting the 40,000 basis points level, while the market capitalisation was close to N13tn.
However, following profit-taking by investors after the release of impressive results by major companies, the market volume began a steep descent, shedding over N631bn in August alone.
The NSE-30 Index, which measures the performance of the top 30 companies on the Exchange, also recorded a significant decline in the period under review, as it fell by 6.07 per cent or 109.22 basis points from 1,798.65 points at the beginning of the month to 1,689.43 points on Friday.
The steady descent in the market, which began towards the end of July, spilled into August, with the market capitalisation of the listed equities falling to N11.496tn on Friday, the last trading day in the month.
This represents a loss of 5.2 per cent or N631tn compared to the N12.127tn recorded at the beginning of the month.
The market capitalisation represents the aggregate value of all the companies or stocks quoted on the Exchange. It is obtained by multiplying the aggregate number of shares outstanding by the current price of each stock.
Similarly, the NSE All-Share Index fell by 5.3 per cent or 2,043.54 basis points to 36,248.53 points on Friday, down from 38,292.07 points recorded on August 1, 2013.
Experts, who spoke to newsmen on Sunday, said the decline was largely as a result of external factors relating to monetary tightening measures.
Activities in the market had reached a peak in June, surpassing the pre-2008 meltdown levels with the All-Share Index hitting the 40,000 basis points level, while the market capitalisation was close to N13tn.
However, following profit-taking by investors after the release of impressive results by major companies, the market volume began a steep descent, shedding over N631bn in August alone.
The NSE-30 Index, which measures the performance of the top 30 companies on the Exchange, also recorded a significant decline in the period under review, as it fell by 6.07 per cent or 109.22 basis points from 1,798.65 points at the beginning of the month to 1,689.43 points on Friday.
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