The Nigerian capital market is now tilted towards bond, as the market capitalisation of the bonds listed on the Nigerian Stock Exchange (NSE) closed at N13.79 trillion on Friday March 6, 2020, accounting for 50.17 percent of the overall market capitalisation of equities, bonds and exchange traded funds(ETF) which stood at N27.49 trillion last Friday.
This is due mainly to the downward trend in the market, which forced investors to look for safe haven in fixed income securities.
Market capitalisation of equities listed on the NSE closed at N13.69 trillion representing 49.81 percent while ETF market capitalisation was worth N6.64 trillion last Friday, representing 0.02 percent of the market.
Market heavyweights such as Dangote Cement, Nigerian Breweries and MTN Nigeria have recorded mixed fortunes year to date when measured in terms of share price appreciation. Dangote Cement’s share price gained 19.7 percent year to date; MTN Nigeria posted 9.5 percent while Nigerian Breweries and Nestle Nigeria have lost 30.8 percent each from their market capitalisation year to date.
This is coming as 11 Plc, formerly known as Mobil Oil notified the Nigerian Stock Exchange of its plan to delist from the NSE, further reducing the equity market capitalisation.
The board of directors of 11 Plc at its board meeting held on 27 February, 2020 considered and approved a proposal for 11 Plc to voluntarily delist from the Nigerian Stock Exchange and would be tabled before the shareholders at the next AGM to be held on June 3, 2020.
TELIAT SULE
