The NGX All-Share Index experienced a significant decline in April, losing N3.57 trillion in market value.
This downturn represents the first monthly decline for the NGX this year, contrasting with gains of 17.7%, 12.47%, and 5.64% recorded in January, February, and March respectively.
Despite this setback, the NGX is still up by 31.36% year-to-date, reports Daily Trust.
The sharp drop in the index was influenced by several policy announcements from the Central Bank of Nigeria (CBN). Notably, the recapitalization plan for commercial banks, aiming to raise an estimated N4 trillion in fresh capital over the next two years.
Also, the CBN significant rate hike led to intensified sell-offs, resulting in a 6% decline in the local bourse, with the benchmark index closing at 98,225.63 points.
The higher rates have diverted trillions of naira from the stock market to the fixed income market, as investors seek out higher yields.
The NGX All-Share Index fell below the 100,000-point threshold, finishing the day at 98,225.63 points, a stark contrast to its peak of 104,562.06 points at the end of March 2024.
