NSE Market Capitalisation Nosedives

Transactions on the Nigerian Stock Exchange opened for the week on Monday on a negative trend, with market capitalisation dropping by N77 billion amid loses by blue chips.
The News Agency of Nigeria reports that the market capitalisation, which opened at N9.569 trillion, lost N77 billion or 0.81 per cent to close at N9.492 trillion.
Also, the All-Share Index dipped 226.04 points or 0.81 per cent to close at 27,634.99 compared with 27,861.03 posted on Friday.

Dr. Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University, Keffi, attributed the development to investors’ reaction to the inflation rate figure released by the National Bureau of Statistics for September.
Uwaleke told NAN in Lagos that high inflation rate would continue to rub off negatively on the stock market because rational investors seek positive real returns on their investments.
He added: “With real returns in a continuous negative territory following increasing headline inflation, investors’ appetite for stocks will be dampened.
“My prediction is that the stock market will be largely bearish in the weeks ahead.”
An analysis of the price movement chart indicated that Forte Oil recorded the highest loss, declining by N7.25 to close at N137.87 per share.
Seplat trailed with a loss of N5.88 to close at N380 and Nigerian Breweries dipped N4.65 to close at N144.05 per share.
Glaxosmithkline was down by 91k to close at N17.48, while Cadbury’s depreciated by 78k to close at N14.89 per share.
Conversely, Wema Bank led the gainers’ table, growing by 4k to close at 66k per share.
Africa Prudential Registrar also gained 4k to close at N2.72 and FCMB Group appreciated by 3k to close at N1.14 per share.
Wapic Insurance grew by 2k to close at 52k, while Skye Bank gained 1k to close at 63k per share.
NAN also reports that the value of shares traded was below one billion naira mark as investors’ staked N778.44 million on 255.81 million shares transacted in 2,588 deals.
This was in contrast with a turnover of 220.85 million shares valued at N1.53 billion traded in 2,381 deals on Friday.
Law Union and Rock emerged the most traded, trading 100.012 million shares worth N70.01 million.
Transcorp followed with an exchange of 49.56 million shares valued at N49.62 million, while Costain traded 32.06 million shares worth N16.03 million.
FBN Holdings accounted for 15.37 million shares valued at N46.03 million and United Bank for Africa sold 10.12 million shares worth N42.84 million.