Equities Lose N2tr in 2009
- By Kayode Ogunwale
- Published January 5th, 2010
- News
- Unrated
Equities Lose N2tr in 2009
By Kayode Ogunwale
TRADING activities in year 2009 on the floor of the Nigerian Stock Exchange (NSE) was on bearish trend as market indicators lost heavily to the financial crisis inn the nation’s capital market.
The total market value of 301 securities listed on the exchange dropped by 28.3 per cent from N6.957 trillion to stand at N4.989 trillion by year-end, this accounted for N1.968 trillion or 28.3 per cent of market capitalisation. The decline in market capitalisation resulted mainly from price depreciations by equities during the year.
The NSE All-Share Index dropped by 33.8 per cent or 10,623.61 points to close at 20,827.17 from 31,450.78 points it opened in 2009. The Index had on March 5, 2008 recorded an historic value of 66,371.20 before dropping to its year end level.
BusinessWorld Intelligence revealed that the sanitization of the banking sector embarked on by Mallam Sanusi Lamido Sanusi, governor of the Central Bank of Nigeria (CBN), added to the spark that hit not only the money market but the capital market negatively.
According to most operators of the market, the year 2009 is one that would be remembered for a long time to come and the lessons learnt indelible. The year started out on a sour note as the full impact of the global financial crisis hit the Nigerian economy.
During the year, hard strapped investors waited for weeks and months to see if they could sell their stocks on profit all to no avail as stocks went crashing almost on daily basis. Even stocks like First Bank Plc that is as good as money in the market, take weeks to sell and even then in loss to most investors.
By Kayode Ogunwale
TRADING activities in year 2009 on the floor of the Nigerian Stock Exchange (NSE) was on bearish trend as market indicators lost heavily to the financial crisis inn the nation’s capital market.
The total market value of 301 securities listed on the exchange dropped by 28.3 per cent from N6.957 trillion to stand at N4.989 trillion by year-end, this accounted for N1.968 trillion or 28.3 per cent of market capitalisation. The decline in market capitalisation resulted mainly from price depreciations by equities during the year.
The NSE All-Share Index dropped by 33.8 per cent or 10,623.61 points to close at 20,827.17 from 31,450.78 points it opened in 2009. The Index had on March 5, 2008 recorded an historic value of 66,371.20 before dropping to its year end level.
BusinessWorld Intelligence revealed that the sanitization of the banking sector embarked on by Mallam Sanusi Lamido Sanusi, governor of the Central Bank of Nigeria (CBN), added to the spark that hit not only the money market but the capital market negatively.
According to most operators of the market, the year 2009 is one that would be remembered for a long time to come and the lessons learnt indelible. The year started out on a sour note as the full impact of the global financial crisis hit the Nigerian economy.
During the year, hard strapped investors waited for weeks and months to see if they could sell their stocks on profit all to no avail as stocks went crashing almost on daily basis. Even stocks like First Bank Plc that is as good as money in the market, take weeks to sell and even then in loss to most investors.
