NSE loses N42.7bn — 3 days after CBN MPC noted a ‘seeming bubble’
Nigerian Stock Exchange (NSE) lost its most recent bullish trend on Friday, three days after Godwin Emefiele, governor of the Central Bank of Nigeria (CBN) said there is a seeming bubble at the capital market.
On Friday, the Nigerian bourse lost N42.71 billion to close with a market capitalisation of N12,705,446,827,912.26 — after gaining N577 billion only a day before, and crossing the N12 trillion mark two days ago.
Speaking after the MPC meeting on Tuesday, Emefiele said the monetary policy committee noted a seeming bubble at the capital and cautioned the way inflows were expended.
“The Committee noted the improvements in the equities segment of the capital market as the All-Share Index (ASI) rose by 33.33 per cent from 25,516.34 on March 31, 2017, to 34,020.37 on July 21, 2017,” Emefiele had said.
“Similarly, Market Capitalization (MC) rose by 32.84 per cent from N8.83 trillion to N11.73 trillion during the same period. Relative to end-December 2016, capital market indices rose by 26.59 and 26.81 per cent, respectively, reflecting growing investor confidence due to improvements in foreign exchange management.
“The Committee however, noted the seeming bubble in the capital market and cautioned on the utilization of the inflows.”
The Nigerian stock exchange has had a terrific growth with the last quarter, following the CBN’s decision to open an importer, exporter window for easy flow of foreign exchange.
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