The Nigerian stock market crashed by N1.61tn in two years under the current Federal Government headed by President Muhammadu Buhari, The Punch Newspaper has just revealed in an exclusive report.
Data from the Nigerian Stock Exchange showed that the NSE market capitalisation on May 28, 2015 was N11.658tn, while that of May 26, 2017 (the last day of trading this month) was N10.047tn.
According to the reports, the NSE All-Share Index also crashed to 29,064.52 basis points from 34,310.37 basis points recorded when Buhari took over government.
As of May last year when the government recorded one year in office, over N1.732tn was lost by the market. 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 Newspaper further reports that the NSE All-Share Index also crashed to 28,902.25 basis points from 34,310.37 basis points within one year the current government assumed office.
Investors in the country’s capital market (equity category) lost over N1.053tn in the first quarter of 2016.
During the first three months of last year, the equities market depreciated by 10.79 per cent.
As of the first day of trading last 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 last year.
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