Nigerian Stock Exchange Calms Investors Over weakening Naira

Fri August 12, 2011 – Nigerian Stock Exchange Calms Investors Over weakening Naira

The Nigerian Stock Exchange (NSE) has appealed to investors on the nation’s stock market not to be disillusioned about the on goings in the market. The Exchange said the management would not renege in its duty of protecting the interest of investors in the market. 

The Chief Executive Officer (CEO) of NSE, Oscar Onyema, stated this on Thursday, adding that the Exchange believes that the actions taken by the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC) and the Asset Management Company of Nigeria (AMCON) should bring closure to the banking crisis and help stabilise the financial markets in due course.

He explained that the management of NSE took the proactive action of briefing the brokers’ community before the commencement of trading on Monday. This, he said, had helped to stem the slide of the NSE All Share Index to 1.9 per cent despite putting three banks on full suspension, which eroded N30bn of market capitalisation, and five on technical suspension.

This has happened within the backdrop of the downgrading of the US credit rating by S&P last week, sending the global financial markets tumbling on Monday. The Dow Jones Index experienced a decline of 5.55 per cent, FTSE 100 saw a decline of 3.39 per cent, the DAX was down by 5.02 per cent and CAC 40 declined by 4.68 per cent.