Capital market crash: NSE defends tight regulation

In a bid to prevent another crash of the Nigerian capital market, the Nigerian Stock Exchange, NSE, weekend said the regulators introduced tight regulatory regime which had led to increased investor confidence and recovery of some money lost by investors during the global financial meltdown.

The Chief Executive Officer, NSE, Mr. Oscar Onyema, who spoke against the recent decline in the share prices of companies quoted on the NSE said “ Following the 2008 global financial crisis, the Federal Government of Nigeria, in conjunction with The NSE and its regulator, the Securities and Exchange Commission of Nigeria, SEC as well as the Central Bank of Nigeria (CBN), embarked upon several key initiatives to ensure the Nigerian capital market and the financial market emerged stronger and more resilient.

The focus of this transformation was to

Nigeria stocks, bonds fall on naira, oil price worries

Nigerian stocks fell to a four-month closing low of 40,537 points on Tuesday, as a weaker naira hurt by falling global oil prices dampened appetite for equities, dealers said.

The index shed 1.1 percent on the day to its lowest closing level since May 28, dragged down by heavyweight banking and cement stocks.

Shares in Dangote Cement, Nigeria’s most capitalised stock, shed 1.73 percent to 221 naira, while Zenith Bank fell 3.64 percent to 23.80 naira.

Bond yields also rose as offshore funds sold naira assets, dealers said.

“It was a red day for the Nigerian bourse. We think the current negative market sentiment will persist into tomorrow’s session,” Vetiva Capital wrote in a note.