The total volume of shares traded on the Nigerian Stock Exchange (NSE) in the month of July experienced a drop of 36.13 per cent, the News Agency of Nigeria (NAN), reports.
Statistics obtained from the exchange in Lagos showed that investors during the period traded 4.93 billion shares worth N45.09 billion transacted in 73,083 deals.
The statistics was lower than 7.72 billion shares valued at N77.92 billion achieved in 100,534 deals in June hence the drop.
A further breakdown of the statistics indicated that the Financial Service sector recorded the highest volume of activities, trading 3.08 billion shares worth N16.27 billion transacted in 32,847 deals.
Premium Board Sector came second with a total of 1.01 billion shares valued at N11.68 billion achieved in 12, 614 deals.
Conglomerates industry trailed with 273.72 million shares worth N745.36 million transacted in 3,388 deals, while Consumer Goods sector sold 210.89 million shares valued at N10.14 billion in 11,819 deals.
NAN reports that the market capitalisation during the review period dropped by N546 billion or 5.37 per cent to close at N9.619 trillion, against N10.165 trillion achieved in June.
Also, the NSE All-Share Index lost 1,587.86 points or 5 .36 per cent to close at 28,009.93 from 29,597.79 recorded in June due to sell pressure.
NAN reports that Skye Bank emerged as the worst performing stock during the period under review dropping by 32.79 per cent to close at 70k per share against the month opening price of N1.04.
It was followed by Diamond Bank which lost 29.33 per cent to close at N1.59 per share in contrast with N2.25 it closed for the month of June.
On the other, MRS emerged the best performing stock in the period, appreciating by 11.73 per cent to close at N38.78 per share compared with N34.71 it opened for the month.
Conoil Oil garnered 9.18 per cent to close at N25.22 against N23.10 per share it opened trading for the month of June.
Some stakeholders attributed the drop in market activities and indices to uncertainties in the economy and change in the management of Skye Bank Plc.
Dr Uche Uwaleke, Head of Banking And Finance Department, Nasarawa State University, Keffi, told NAN that the exit of Briatain from the European Union (Brexit) contributed to the downturn posted by the equities market during the review period.
Uwaleke said that the stock market ended the month of July on a negative also due largely to profit taking and the fact that the market was still reeling from the effect of Brexit.
He explained that negative economic indices and unclear government policy direction heightened uncertainties in the country’s investment climate.
Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that the negative economic indices heightened uncertainties in the country.
Kurfi said the current recession being faced by the country also reduced foreign investors confidence in the equities market.
He said that the trend would likely continue with the increase in the Monetary Policy Rate (MPR) to 14 per cent from 12 per cent. (NAN)