Investors lose N2.7 trillion as high interest rates, others depress market indices | The Guardian Nigeria News - Nigeria and World News

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Rising interest rates and other macro economic challenges have continued to hit hard on the equities sector of the Nigerian Exchange Limited (NGX) as investors lost over N2.7 trillion in the month of October.

Specifically, the All-Share Index decreased by 10.58 per cent to close at 43,839.08 points on October 31, 2022 from 49,024.16 points it closed trading on September 30, 2022.

They noted that the local bourse will remain lull and broadly bearish as the prospect of even higher interest rates and the depressed exchange rate weigh on investor sentiments in the medium term. Vice chairman of Highcap Securities Limited, David Adonri also attributed the decline in stock market to investors’ profit-taking in Airtel Africa that is currently adjusting to the bearish reality of the capital market.

“While the drama of general elections can make your imagination run wild, what you need to watch out for is how the unfolding scenario will affect the economy, the capital market, and your portfolio,” he advised. On market outlook, Omordion said: “We expect mixed sentiments to continue in reaction to earnings release so far and bargain hunters are taking advantage of the low prices to reposition ahead of more Q3 corporate earnings.

 

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