The Nigerian stock exchange recorded a N233.2 billion loss on Monday after the All Share Index lost another 2.5%. The market has now lost about N700 billion since the new year and has wiped out the gains made during the Santa rally of late December.
The market has been in selling mode since the new year as investors look forward to an announcement of another round of devaluation after the visit of the IMF. Instead, the CBN has now gone ahead to ban the BDC’s from accessing its forex window a move that has already sent the naira to a new low of N282.
The sell-offs in the Nigerian Stock Exchange continues to point to the lack of participation by foreign investors and also reflects a growing exit by local investors who are beginning to lose faith in any sign of a revival of the Nigerian economy. With the price of oil now at $32 and predicted to hit $20, it is expected that the stock market will continue to come under sever sell pressure. The Nigerian All Share Index lost 12% in January 2014 after it gained 0.1% in December.
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