The Nigerian Exchange Limited started the week on a negative note, with investors incurring losses amounting to N89 billion.

This decline in the stock market coincided with the release of the latest inflation figures, which indicated a surge in inflation to 26.72% in September, marking an increase of 0.92% compared to the previous month’s figure of 25.80%.

The data from the National Bureau of Statistics revealed that the primary drivers of year-on-year inflation were food and non-alcoholic beverages, housing, water, electricity, gas, and other fuels, as well as clothing and footwear, and transport, accounting for 13.84%, 4.47%, 2.04%, and 1.74% respectively.

The market remained focused on the inflation figure for the week, as well as the release of third-quarter earnings reports from companies listed on the Nigerian Exchange.

Both the All-Share Index and the market capitalization depreciated by 0.24%, closing at 67,037.93 basis points and N36.830 trillion, respectively.

During the trading session, there were 5,965 deals involving over 216.07 million units of shares valued at N3.551 billion.

Market sentiment was negative, with 19 gainers and 23 losers. Leading the gainers were NASCON Allied Industries, whose shares appreciated by 5.45% to close at N58 per unit. Flour Mill followed, closing at N31 per share after gaining 4.20%, while Dangote Sugar rose by 3.13% to close at N62.60.

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United Bank for Africa’s shares increased by 2.28% to close at N17.95, and Unilever gained 0.70% to close at N14.35.

On the losers’ side, Stanbic IBTC’s share value decreased by 10% to close at N72 per unit, Oando lost 9.24% to close at N8.35, Eterna’s shares shed 8.05% to close at N13.70, Cadbury dipped by 6.67% to close at N14, and Okomu Oil lost 9.96% to close at N236.80.

Uche Uwaleke, a professor of capital markets at Nasarawa State University, expressed concerns about the rising inflation trend.

He noted that inflationary pressures, which have been decreasing in various parts of the world, are on the rise in Nigeria.

Factors contributing to this increase include fuel subsidy removal and naira depreciation. The food sector, accounting for over 50% of the inflation rate, is facing significant pressure, particularly in urban areas due to high transportation costs.

This inflationary trend affects the purchasing power of the naira, increases poverty levels, and contributes to the growing dollarization of the Nigerian economy and heightened demand pressure in the forex market.