Lagos — The value of shares listed on the floor of the Nigerian Stock Exchange (NSE) declined by N1.309 trillion in the last three months.
The market capitalization of the equities on the main board reached an all time high of N12.854 trillion on 11th June 2013 to close at N11.545 trillion on 11th September 2013.
However, the market in the last six weeks declined by 5.9 per cent.
The index movement on the Exchange between August 5 and September 13 indicates that the NSE All-Share Index shed 5.87 per cent to close the period at 36,098.07 basis points from 38,350.96 points it opened. The market capitalization of the equities on the main board also depreciated by N651 billion or 5.36 per cent to close at N11.494 trillion from N12.145 trillion it open the period.
Also, the NSE 30 Index depreciated by 7.59 per cent to close at 1,666.49.
All other indices depreciated in the course of the period as NSE-Alternative Securities Market (NSE ASeM) dropped 0.35 per cent, the NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Oil/Gas, NSE-LII; NSE Industrial Goods shed 7.43 per cent, 7.88 per cent, 4.05 per cent, 10.04 per cent, 4.97 per cent and 5.92 per cent respectively.
Consequently, trading activities on the Nigerian bourse continued its poor performance as market dipped further by 0.84 per cent last week.
The index movement during the week shows that the NSE All-Share Index depreciated by 0.84 per cent to close on Friday at 36,098.07 while the market capitalization decreased by 0.84 per cent to close at N11.494 trillion.
Similarly, the NSE 30 Index shed 0.66 per cent to close at 1,686.49.
Other NSE indices depreciated during the week: NSE Consumer Goods, NSE Banking Index, NSE Insurance, NSE Oil/Gas, NSE Lotus II and NSE Industrial Goods decreased by 0.73 per cent, 0.81 per cent, 2.96 per cent, 0.64 per cent, 0.13 per cent and 0.74 per cent respectively, while, the NSE-ASeM closed flat.
Despite this constant decline in the price of shares, the Director General of the Securities and Exchange Commission (SEC), Ms. Arunma Oteh believes the performance of the Nigerian equity market is one of the best around the world.
Speaking recently in Lagos, the SEC boss said the commission is delighted with the way market is moving.
According to her, "As an institution, we are delighted at the way the market evolved in the last year. We had a very exciting first half with the market hitting an all-time high of 40,000 indexes. It is important to note that despite the challenges that emerging markets all over the world have been faced with; the Nigerian market has been doing well.
"Markets such as China, Indonesia, India and Brazil have struggled but Nigeria's capital market remains one of the best all over the world. This gives a lot of credence to the reforms embarked upon by the regulators in the last three years."