Lagos (Lagos state) – Mr Oscar Onyema, the Chief Executive Officer, Nigeria Stock Exchange (NSE), on Monday advised investors not to panic due to the current market volatility.
Onyema told the News Agency of Nigeria (NAN), in Lagos that the volatility was a “reflection of what is going on in the economy.’’
He urged stakeholders to find a way to support the economy in order to revamp the market.
According to him, the market is trying to be responsive to the economy, it is a barometer of the economy.
“At every trade, we are trying to establish equilibrium in price, there is a different view to establishing that equilibrium in price.
“And an efficient market will take into consideration all available information in order to establish price.
“Given the lack of depth in our market, it’s easier for those views to show volatility in the market place. As our market becomes deeper, you are able to moderate that volatility”, he said.
Onyema said the exchange would continue to promote price discovery, adding that market anywhere would experience volatility when there were fears.
“Even in a very deep market, when sentiment tends towards fear, when sentiment tend towards concern as to the growth potential of investment, you see higher volatility in the volatility measure”, Onyema added.
He called on investors’ to use the opportunity to increase their stake in the market, noting that “there are opportunities for investors to make money even when the market is going down.”
The chief executive said that “higher volatility provides greater trading opportunity for the trading community.
“For us, the important thing is to find a way to support the growth of the economy such that the market will be a key player in driving the growth of the economy”, Onyema said.
Meanwhile, trading at the NSE resumed for the week on Monday on a negative trend with the market indices dropping by 0.03 per cent.
The News Agency of Nigeria (NAN) reports that the market capitalisation lost N3 billion to close at N10.026 trillion as against N10.029 trillion achieved on Friday.
Similarly, the All-Share Index which opened at 29,175.35 lost 7.31 points or 0.03 per cent to close at 29,168.04.
NAN reports that 7UP recorded the highest price loss to lead the losers’ chart, shedding N5.96 to close at N185.06 per share.
Nigerian Breweries trailed with a loss of N1.02 to close at N135, while Dangote Cement dipped N1 to close at N162 per share.
ETI shed 35k to close at N18.15 and Lafarge Africa dropped 25k to close at N93.75 per share.
On the other hand, Unilever led the gainers’ table, growing by N1.57 to close at N33 per share.
UAC followed with N1.37 to close at N29.10, while PZ Industries appreciated by N1.18 to close at N25.50 per share.
Cement Company of Northern Nigeria increased by 80k to close at N8.73 and Oando appreciated by 78k to close at N8.50 per share.
GT Bank recorded the highest volume of activities, trading 335.61 million shares worth N7.75 billion.
Access Bank followed with 335.37 million shares valued at N1.51 billion, while Beco Petroleum traded 179.36 million shares valued at N89.68 million.
Capital Oil exchanged 106.68 million shares worth N53.34 million and Continental Reinsurance sold 33.36 million shares worth N35.35 million.
In all, investors’ staked N14.68 billion on 1.13 billion shares traded in 2,713 deals.
This was in contrast with 997.78 million shares worth N6.12 billion transacted in 2,711 deals on Friday. (NAN)