Nigerian Stock Market Loses 1.6 Trillion Naira In 11 Months!

Nigerian stock market has lost N1.619 trillion of its capitalisation as at the close of the November  2011, following continual plunge in the prices of equities without any respite.

The market capitalisation dipped by 20 per cent from N7.914 trillion in January to N6.295 trillion  while  the Nigerian Stock Exchange (NSE) All-share Index dipped by 19 per cent from 24,770.52 in January to close at 20,003.36 Wednesday. The market, which recovered by 18.9 per cent in 2010 after   crashing  in 2008 and 2009, had opened 2011 on a positive note.

The market had  recorded a growth of 8.3 per cent in January before the bears set and have remained in control for most part of the year. As a result, the market capitalisation has recorded a decline of 20 per cent while the index has dipped by 19 per cent in 11 months. Analysts said that with the 11 months negative performance, the market would close the year with depreciation. They  noted that this time last year, the market was in the bulls’ territory unlike the present situation.


Between January and November 2010, the market capitalisation gained N2.919 trillion, while index rose by 18.9 per cent. In specific terms, the market capitalisation rose from N4.989 trillion to N7.908 trillion while index grew from 20,827.17 to close at 24,764.65. However, in the month of November 2011 alone, the market went down by 4.5 per cent compared with a gain of 2.8 per cent in October 2011.

Yesterday, which was the last day of the November, the bulls fought back and  in order to take  control of the market. But the marginal growth posted was not enough to change the overall negative trend in the market.

At the close of trading 20 stocks appreciated while 21 stocks dipped in value. Flour Mills of Nigeria Plc led the price gainers with N1.50 to close at N64 per share. NCR Nigeria Plc trailed with a gain of   N0.44 per share. Presco Nigeria Plc and Stanbic IBTC Bank Plc chalked up N0.33 and N0.32 to be at N7.74 and N8.03 respectively.

Conversely, Glaxosmithkline Consumer Nigeria Plc led the price losers with N1.27 to be at N24.23 per share. PZ Cussons Nigeria Plc closed as the second highest price loser with N1.00 to be at N29.00 per share. Ecobank Transnational Incorporated and Forte Oil Plc shed N0.42 apiece.

Meanwhile, investors traded 300 million shares valued at N2.647 billion exchanged in 3.560 deals, up from 209.998 million shares worth N1.951 billion traded in 3,742 deals the previous day.

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