The market capitalisation of the Nigerian Stock Exchange (NSE) dropped by N106 billion last week to close at N10.51 trillion against the N10.62 trillion posted in the preceding week.
According to statistics made available to the News Agency of Nigeria (NAN) in Lagos on Monday, the All-Share Index also lost 334.09 points or 1.01 per cent to close at 32,849.11.
This was against the 33,183.20 posted the previous week.
In the week under review, Nestle topped the losers' table with N50 to close at N836 per share.
It was followed by Guinness which lost N11.50 to close at N265, while Dangote Cement lost N5.49 to close at N142.50 per share.
Conversely, UACN led the gainers' chart with N4.10 to close at N54.10 kobo per share.
Oando came second with N2.96 to close at N17.94 per share, while Unilever gained N2.14 to close at N19.76 per share.
Similarly, the volume of shares traded declined by 1.93 billion shares worth N20.99 billion.
This was against the 2.28 billion shares valued at N24.63 billion traded in 28,170 deals in the corresponding week.
The Financial Services sector was investors' delight as it accounted for 1.51 billion shares worth N13.53 billion in 17,688 deals.
Capital market operators told NAN that the lull in the capital market last week was due to the poor dividend declared by Nestle and Nigerian Breweries for their 2012 financial year.
Mr David Adonri, the Chief Executive Officer, Lambeth Trust & Investment Company Ltd., said that most investors were disappointed by the dividends declared by Nestle and Nigerian Breweries.
Adonri also attributed the market downturn to over valuation of some stocks due to prolonged bullish trend.
?”Due to the prolonged bull run, several stocks became over valued and market correction set in when speculators started taking profit, thus inundating the market with excessive supply of stocks.
Alhaji Rasheed Yussuf, the immediate past President, Association of Stockbroking Houses of Nigeria, said that the market was expecting 2012 results of companies that could propel activities.
Yussuf said that the market was expecting financial results, particularly from the banking sector that could meet investors’ expectations in terms of dividends.
He, however, urged investors to take advantage of the current low price of equities to increase their stakes in the market.
Another stockbroker, Mr Emma Ndu, called for macroeconomic policies and decisive interventions by market makers to ensure stability in the market.
Ndu said that the Federal Government should speed up its privatisation process, implement its 2013 budget effectively and pass the Petroleum Industry Bill to increase liquidity in the market.