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Stocks
First Tier Securities Market
Second Tier Securities Market
Recent Performance
According to the IFC the Nigerian Stock Exchange ranked as one of the best performing markets in the world in terms of returns for 1995. This was due largely to the removal of government restrictions on investment that year. It grew by 128% in value in 1995 and 38% in 1996.
In April 1997, the NSE All Share Index peaked at 8800 points and then spent the next 28 months sliding 45% (back to October 1995 levels) before the transition and a renewed faith in the economic prospects of the country helped it bounce back. In the last quarter of 1999, the market climbed nearly 10% in local currency terms. It now stands at the same level as at March 1996.
Stock Market Statistics
| |
|
Sec Trust |
Mkt. Cap. |
Sec Trust |
Ave.PE |
Ave.Div. |
Ann.
Turnover |
Liquidity |
No. of |
| Date |
NSE Index |
50 Index |
(Nbn.) |
(US$'bn) |
Ratio (x) |
YId. (%) |
(N'mil) |
Ratio(%) |
Equities |
| 1994 |
2,205.0 |
100.0 |
65.5 |
0.8 |
6.0 |
8.4 |
985.9 |
1.5 |
177 |
| 1995 |
5,093.0 |
309.0 |
165.4 |
1.9 |
9.0 |
5.6 |
1,838.8 |
1.1 |
181 |
| 1996 |
6,992.1 |
632.3 |
268.6 |
3.6 |
11.0 |
4.1 |
6,201.3 |
2.3 |
183 |
| 1997 |
6,440.5 |
522.9 |
275.0 |
3.5 |
10.8 |
4.2 |
9,431.2 |
3.4 |
182 |
| 1998 |
5,715.0 |
425.3 |
251.9 |
2.8 |
11.4 |
5.0 |
13,207.8 |
5.2 |
184 |
| 1999 |
5,266.4 |
338.7 |
294.0 |
2.9 |
10.1 |
6.7 |
13,915.1 |
4.7 |
195 |
Market Activity
Turnover on the Nigerian Stock Exchange has risen over the last three years, the value of shares traded was up over 1,200% between 1994 and 1999. Activity rose dramatically in 1996 due to the lifting of restrictions on cross-deals on the exchange floor.
But at less than 5% the liquidity ratio of the market is still one of the lowest of any emerging market, this is due largely to the high factor of institutional and state ownership of shares. At the end of 1997, private individuals held only 41.8% of all shares. The new Automated Trading System (ATS) has vastly improved the liquidity of the market by facilitating the matching of bid and offer prices between traders and thereby speeding up the entire trading process.
The banking sector is traditionally the most active due in large part to the number of equities in the sector, but also as a result of the onwership structure of the banks with very few institutions holding significantly large stakes in any one bank, unlike in the consumer goods and other sectors dominated by multi-nationals.
Data provided by SecTrust
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