The Chartered Institute of Stockbrokers (CIS) has sent a position paper to the Federal Government urging the President Umaru Yar’Adua government to intervene in the persisting meltdown of the Nigerian stock market.
The stockbrokers’ action is apparently informed by the persisting meltdown in the Nigerian stock market.
A source close to the body said it would not want to disclose the content of the paper but that the gist of it is to let the government know that “We need an all-inclusive support of all stakeholders to arrest the situation because it is getting to a critical level.”
The Nigerian stock market has been going through a chequered performance since March last year. Consequently, the total market value of 301 securities listed on the Nigerian Stock Exchange (NSE) dropped by 28.1 per cent from N13.295 trillion to N9.563 trillion as at December last year.
In the same vein, the NSE all-share index dropped by 45.8 per cent to close at 31,450.78 points. The index had on March 5, 2008 recorded a historic value of 66,371.20 points before dropping to this level at the end of the year.
As at yesterday, the market capitalisation closed at N5.19 trillion while the all-share index closed at 23,306.87 points.