Activities at the Nigerian capital market have declined, with the All Share Index (ASI) decreasing by 4.3% from 42,482.48 recorded on 30 June to 40,672.94 on 12 Sept., according to a statement posted on the Central Bank of Nigeria (CBN) website.
Market Capitalisation also decreased by 4.3%, from 14.03 trillion naira on 30 June to 13.43 trillion naira on 12 Sept.
The statement explained that the market indicators declined due to profit-taking activities of investors.
The statement formed part of the communiqué from the apex bank’s Monetary Policy Committee (MPC) meeting over the weekend.
The Committee reviewed key developments in the global and domestic economy up to mid-September 2014, and the outlook for the future.
It noted the continued resilience of the economy as real Gross Domestic Product (GDP) grew by 6.54% in the 2nd quarter of 2014, compared with 5.40% in the corresponding quarter of 2013.
“The observed growth rate also surpassed the 6.21 per cent recorded in the Q1 of 2014. The non-oil sector remained the main driver of growth, recording 6.71 per cent in Q2, 2014; although lower than the 8.21 and 8.88 per cent recorded in Q1, 2014 and the corresponding quarter of 2013, respectively,” the statement added.
The decline in growth of non-oil GDP was traced to the decline in agricultural output, construction, trade and services relative to the levels recorded in the 1st quarter of 2014.
The slowdown in agricultural output was attributed to the insurgency activities in the
North-east and some parts of the North-central states, which led to displacement of farming communities, thereby limiting Agricultural activities.
Growth in the services and industry sectors remained relatively stable compared with the corresponding period in 2013.
The oil sector grew by 5.14 % in the 2nd quarter of 2014, a marked reversal from the decline recorded in the preceding four quarters.
The MPC also noted that inflation rose to 8.5% in August from 8.3% in July 2014.
In August 2014, the year-on-year core inflation was 6.3%, down from 8.1% and 7.1% in June and July, respectively.