By Munachimso Obienyi
With heavy profit-taking occasioned by the weak macroeconomic environment, insecurity, inflation amongst other factors, investors’ wealth on the floor of Nigeria’s stock market dropped by N2.57 trillion in the month of October 2022.
The market capitalization of the Nigerian Exchange Limited (NGX) had gained over N4.15 trillion in the last nine months amidst inflationary pressure which stood at 20.52 per cent.
However, on monthly performance, the investors lost over N324 billion in the month of September 2022, as a result of sell-off pressure arising from the rising inflation rate, increased Monetary Policy Rate, MPR, market sentiments, and other macroeconomic headwinds.
According to data obtained from the NGX’s website, the All Share Index (ASI), which measures the entire market return, opened the trading month of October 2022 at 49,024.16 basis points, closed the month at 43,858.34 basis points, representing a 10.5 per cent decrease while market capitalization which opened at N26.451 trillion, closed at N23.877 trillion, representing a N2.57 trillion loss for the trading month.
