₦airaland Forum

https://www.nairaland.com/3137016/stock-market-lost-n1.732tn-one
The Nigerian stock market crashed by N1.732tn within one year of the Muhammadu Buhari-led Federal Government.

The Nigerian Stock Exchange data showed that the NSE market capitalisation on May 28, 2015 was N11.658tn, while that of May 27, 2016 was N9.926tn.


Market capitalisation is the total market value of the shares outstanding of a publicly traded company.

The NSE All-Share Index also crashed to 28,902.25 basis points from 34,310.37 basis points.

Investors in the country’s capital market (equity category) lost over N1.053tn in the first quarter of 2016.

During the first three months this year, the equities market depreciated by 10.79 per cent.

As of the first day of trading this year (January 4), the NSE market capitalisation stood at N9.757tn, while the All-Share Index was 28,370.32 basis points.

But as of the last day of trading in 2016 Q1 (March 31), the market capitalisation and All-Share Index crashed to N8.704tn and 25,306.22 basis points, respectively.

Equity investors in the country’s capital market had, in the first seven trading days on the floor of the NSE in 2016, lost N804tn of their investment’s worth. Market capitalisation after the close of trading on the floor of the Exchange on the first seven days closed at N8.953tn.

The All-Share Index also dropped from 28,370.32 basis points recoded on the first day of trading in 2016 to 26,034.94 on the seventh trading day of this year.

The downward trend in the Nigerian stock market, weeks into 2016, did not show any sign of abating as the market capitalisation continued to fall, with 10 out of the 12 indices of the NSE recording negative stance 10 weeks into 2016.

The market capitalisation of the NSE fell by N811bn in the first 10 weeks of trading this year.

The NSE market capitalisation dropped from N9.75tn on January 4, 2016 to N8.939tn 10 weeks into the year, while the All-Share Index also closed at 25,988.40 basis points from the 28,643.67 basis points recorded on the first trading day of the year.

Investors had also made huge losses in the Nigerian equities market last year as the market capitalisation (equities only) of the NSE shed a total of N2.354tn between December 2014 and December 2015.

The President, Nigerian Stock Exchange, Mr. Aigboje Aig-Imoukhuede, last week, said the country’s capital market could not continue to lag behind in the global arena, adding that it needed to strategise for growth to better the economy.

He said the capital market must facilitate capital raising for economic growth as well as mobilise savings for investment.

Aig-Imoukhuede said part of the strategies was a broad consensus on sectorial priorities for growth, which should feed into policy formation.

He advocated for incentives for priority economic sectors like Information and Communications Technology, while pushing for non-listed national champions to be listed on the NSE for others to follow.

He said, “Nigeria is facing a huge growth challenge. Nigeria, indeed, has a big challenge in terms of growth. Employment rate must grow owing to the fact that the population is also growing very fast. Growth is difficult to realise; so, government must stimulate growth.

“Nigeria is only exaggerating the impacts of falling oil prices now. This is because with a robust financial market the economy can be sustained. The financial market must be encouraged.”

He described the Nigerian financial market as a ‘high-risked’ market, saying the situation was capable of attracting limited investors who could ultimately stop at nothing to maximise returns.

An analyst at WSTC Financial Services Limited, Mr. Tola Oni, said in the last one year, the efficiency of the country’s economy had been constrained by policies – monetary and fiscal.

He noted that the country had not been able to chart the right path in the past one year, saying some actions by the Federal Government in recent times had shown a rethink especially in the partial deregulation of the petroleum downstream sub-sector and the flexible foreign exchange market.

“Our concern is that this flexibility must mean flexibility in the whole sense of it. We’ve seen the capital market make progress recently owing to these. Any attempt by the government to interfere again could drag us back significantly,” he added.

The President, Constance Shareholders Association of Nigeria, Mr. Shehu Mikail, said the happenings in the stock market in the past one year were a reflection of the country’s economic stance, which is very hostile policy-wise

He said the country had been plagued with serious economic and financial challenges, which had resulted in activities being slowed down especially in the financial sphere, which included the NSE.

Mikail added, “The prices can be better if things turn around economically. The 2016 budget had been passed and the implication of the passage would start filtering into the economy in due course. With the recent forex flexibility, we expect the game to change.

To this end, the NSE Chief Executive Officer, Mr. Oscar Onyema, while commenting on the state of the market, had said, “Among emerging markets, recession has materialised in Brazil and Russia, and the trend is likely to continue amid weakening oil and other commodity prices. The Nigerian stock market had already lost $30bn since July 2014.

“In the sub-Saharan Africa, while the recent performance of Nigeria and South Africa, has been lackluster, the overall region has weathered the commodity slump better than Latin America and elsewhere, with growth slated at 4.3 per cent in 2016, up from 3.8 per cent in 2015.”

http://www.punchng.com/stock-market-lost-n1-732tn-one-year-buhari/

megainvest:
Quote of the day while the bear lasts:

"I promise to fulfill my promises!"

Please sir these promises.. i beg make i know one now

i said it this is a temporary bear! it is a continuation of last friday... FBHN, ZENITH, ACCESS BANK GATHERING MOMENTUM GRADUALLY WAIT ON TILL 1PM ALL RED WILL TURN TO GREEN

bear today is something else... buhari need a good adviser! the economic policies is not favourable at all

JAS10:
you are right sir, pre-market is looking bearish.

first day of the week is always bearish.. natural in nigeria NSE

know matter how the pre market look bearish i will not sell my stocks... just a temporary force! i know investors will like to look @ the market today to determine their next move....

am back ahter a long holiday will the bear continue

everything is not force..... buhari

yoruba that are known as follow follow

confused set of follow follow

Godisfaithful:
The bids might hit the market anytime soon...lol ....while the sun shine

it will gain more strength before the end of the market today

whether u believe it or not NSE is monopolized by a set of billionaires who control the market... temporary bear have stated....

una bad oooohhhh!!!!!!! some people will place an offer in FBNH in the next 2minutes they will remove it.... .... making bidders feel bad

FBNH bid will be weak today! but in a long run it will get itself

.... please add me op.. abeg i beg u

as far as UBA.. the follower of FBNH broke the various resistant and get to 5.36... am not sure that there is any thing that will stop FBNH to break N5... the problem now is that will u be patience enough

Chibuking81:
All I can say, God thank you for making your word come true. Thank you for turning all my portifolio green in a day like this. Friends remember the green all the way. No longer sell in May and run away, but buy in May and wait for your return. By God grace we are making money this year.

my mentor! i really believe on ur words... u all emphasis on month of may... it is really bullish indeed

jesussssssssssssssssssssssssssssssssssss where access bank dey go again....... patience pays abeg make una tell me

ufotty2001:
please if you are the owner of firstbank 140,000 units @ the offer side.. please remove it! it will be very wrong for first bank to cross bid @ 3.99 as the opening price for today instead of 4.19... abeg go commot ammmmmmmmmmm

be like say the person dey for this forum...finally the person don commot am! now first bank will open with 4.18...

please if you are the owner of firstbank 140,000 units @ the offer side.. please remove it! it will be very wrong for first bank to cross bid @ 3.99 as the opening price for today instead of 4.19... abeg go commot ammmmmmmmmmm

jp130:
Skye bank hiding result. Wat r dere afraid of?

my brother, i bought skye @ 0.75k and sold @ N1 ... the truth is that i have waited till my two legs start paining me.... but dont be supprise the same skye may or may not give out 0.10-0.15k as dividend.. also in the other part too syke bank may not give out any dividend remember its fellow profit warners FNBH @ 0.15K , DIAMOND BANK @ NIL.. .. just wait till 1st of june.. my advice is that be watchful ... best of luck! please do ur DD very important (am not a prophet that can predict what will happen).. it was specifically stated that the results will be delayed due to the merger/ acquisitions that was recently done with main stream bank or mainstreet bank i don forget the name...

bolabiyi:
Chai...were I go put my cash now.. Don't like buyimg in the midst of a bull run..oya bull run small, make my guys enjoy. Bear, u continue press up, make u take over..

buy syke bank deadly results full of ebola and window dressing is abt to come out ... wetin i dey talk self.. please ignore this msg

zendi:
you sold the good stock.

i did not know bro... sold @ 5.. enter @ 4.65k... use the money to enter firstbank... bro, i no being know oooohhhh ... it is well

JAS10:
about 1.5ml bid with no offerquote author=lexy2lexy post=45956283]Can anyone help with bid offer status for Lafarge Wapco

bid 1.58m and offer nil, bro the money u are about to make from wapco.. us the gain and buy samsung galaxy.. or iphone or android... anywhere u are u can view ur price, bid, offer, .... that is what i used for my forex and NSE .. when my oga @ office commot i don drop office work immediately... anyway am just joking!

Manonamission:
I am speculating FBNH will break N4 comfortably tomorrow.

bros, i think with the heavy force am seeing fbhn will break 4 tooo... i just wish the mkt will close now... @ that full bid

yrmybank:
Bro, you're terrible, just terrible. This man told us he's heavy on fbnh and he's unhappy with how slow the stock is moving and your statement is what you recon is best for him now. You even quoted him. If you haven't got encouraging words to say, next time, just keep mute.

so i should tell him that the price will go up.. bro, face reality!! stop using speculation to trade NSE

sold my tigerbrand looking for a good stocks.. abeg make una tell me good stock where i go fit enter

fxuser:
na real slow and steady !
UBA far more nimble
but the days of trading below N4 almost over

firstbank may have a resistant @ 4

donmarshia:
FBNH can slow sometimes ehhh. Others don rush hit roof top, while the Elephant still dey ground dey struggle to get up.

Shaa, the popular saying says " Slow and Steady wins the race".

The consolations of a man heavy on FBNH.

to me first bank will still drop.. bid 13.5m / offer 13.4m i believe firstbank will drop

specialmati:
How much is tiger brand

4.82

fxuser:
No offers for now . .

bros, that initial gragra... just wait for first bank around 12.00pm u will buy first bank @ 4.90-4.94

bolabiyi:
chai...see Money...chineke, which bus I fit catch na? ChinekeEeeee..

to me firstbank is just starting but do ur dd