Bullion
Keywords
Nigerian stock exchange, Stock indices, Stock index, Nigerian capital market
Abstract
The paper reviews the performance of the sectoral indices during the first twenty-four months of their existence, i.e., between their inception in January 2009 and December 2010. The authors seek to examine not only the raw performance of the indices but also their risk-adjusted performance. The results of the analysis will facilitate the allocation of capital by institutional as well as individual investors in the Nigerian equity market. The rest of the paper is organized as follows. Section 2 discusses the transformation of the indices and their correlation. In section 3, we examine the nominal performance of the sectoral indices while section 4 discusses their risk-adjusted performance. Section 5 concludes the paper. The paper concluded that since the dataset largely covered the peak periods of the global financial and economic crises which had an adverse impact on stock performance globally (the NSE ASI dropped by 33.8 per cent in 2009, having dropped by 45.8 per cent in 2008), this study can be extended to cover periods after the global financial and economic crises. This paper could form a basis for performance analyses in the post-crises period.
Publication Title
CBN Bullion
Issue
4
Volume
34
Recommended Citation
Ikoku, Alvan E. and Okorie, George
(2010)
"The performance of Nigerian stock exchange sectoral indices: January 2009 December 2010,"
Bullion: Vol. 34:
No.
4, Article 1.
Available at:
https://dc.cbn.gov.ng/bullion/vol34/iss4/1