Nigeria: Again, Stock Market At Mercy of Speculators

Stocks listed on the Nigerian Stock Exchange (NSE) behaved true to type last week, as investors almost wiped off the memory of the gains recorded between November 5 and 17 as the sign of declines set in last week Monday. The decline cut short the celebration that the market had bounced back after almost eight months of huge losses, with investors seeking the exit door as panic selling characterised market activities. At the close of trading last weekend, equities capitalisation had lost a total of N659.91 billion, representing 66.97 per cent of the N985.376 billion recovered, just as the All-Share-Index, once more, inched closer to its 52-week low level of 33,754.11 points attained on November 5. Last week, the index closed at 34,660.65 points after dropping 3,215.41 basis points or 8.48 per cent from the 4,264.33 points or 12.63 per cent garnered within the period while the rebound lasted. Last weekend's slide means the index closed 40.23 per cent lower than the level at the beginning of this year.

Last week Monday's robust growth especially in the value of listed stocks was enhanced by the 2.251 billion shares added to those outstanding in the name of Union Bank of Nigeria, following the directors' offer of a bonus of one new share for every six held as at Monday November 17, 2008.

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