Nigerian Stock Market Loses N2.354tn In One Year
The market capitalization (equities only) of the Nigerian stock market has shed a total of N2.354tn in the past year.
The Nigerian Stock Exchange, in its fourth quarter 2014 Fact Sheet, put the market capitalization at N11.478tn; but at the end of trading on Friday, it stood at N9.124tn.
This, therefore, represents a 20.5 per cent drop in the stock market value.
The market had been on a decline for the greater part of this year due to various factors.
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In January alone, the renewed dumping of shares by investors at the stock market over uncertainty in the political landscape led to a dip of N1.16tn in the market capitalization of the Exchange in the first three trading days of the year.
Trading on the NSE in 2014 had closed with a decline of 16.1 per cent in the market capitalization, which resulted in the stock market opening 2015 on a bearish note.
The NSE All Share Index, which stood at an average 34,657.15 points in the last quarter of 2014, has fallen to 26,537.36 so far this year, according to NSE statistics released on Friday. This represents a drop of 23.4 per cent.
This trend has further shattered the dreams of the Exchange to stabilize and further grow the market capitalization.
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The Chief Executive Officer of the NSE, Mr. Oscar Onyema, had in the early part of this year said that his self-imposed target of achieving $1tn (about N197tn) market capitalization by 2016 was no longer feasible.
Credit: Punch
