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Nigerian Stock Exchange Introduces Circuit Breaker as Stocks Plunge
Lagos, Nigeria, Capital Markets in Africa —- Nigeria’s stock exchange introduced a circuit breaker to limit price fluctuates (fall/rise).
Trading on the Nigerian Stock Exchange will be stopped for 30 minutes if the All Share Index moves 5 percent from the previous day’s close between 10:15 a.m. and 1:45 p.m. (local time), the Lagos-based exchange stated in a statement on its website. The market will close for the day if the circuit breaker is triggered for a second time or after 13:45 p.m. (local time).
The implementation of the rule, originally approved by Securities Exchange Commission, Nigeria in May 2014, came as the market experienced its six day of consecutive losses. The All Share Index fell 3 percent to 23,514.04 today after trading 476.650 million shares at NGN6..2 trillion. This extend the weekly decline to 13 percent. The All share index has plunged by 18 percent in 2016.
Nigeria, Africa’s largest oil producer, is struggling to cope with crude oil prices that have fallen to below about US$31 a barrel. Oil accounts for two-thirds of government revenue and about 90 percent of its foreign currency earnings.
