The Nigerian stock market shed N634 billion or three per cent in the first quarter of 2021 as policy reversal, continued absence of foreign investors influenced the performance of the market.
The Nigerian Stock Exchange market capitalisation fell from N21.063 trillion at the beginning of the year to N20.429 trillion on Wednesday, which was the last day of the quarter.However, the decline in Q1 of 2021 was better than the 20.6 per cent recorded in Q1 of 2020, when the COVID-19 pandemic impacted the market negatively.
Zenith Bank Plc, Guaranty Trust Bank Plc, Dangote Cement Plc, United Bank for Africa Plc, United Capital Plc, BUA Cement Plc are among some of the companies that attracted increased demand for stocks by investors, which led to the moderation of the decline. According to her, uncertainties over probable naira devaluation were keeping foreign investors on the fence, with barely 25 per cent participation in the equity market.
“Hence, our approach is to continue to diversify our clients’ portfolio with the right investment options, including equities, fixed income securities and alternative assets, based on different clients’ profile and market dynamics.