By InvestAdvocate

Lagos (INVESTADVOCATE)-Oscar Onyema, the Chief Executive Officer (CEO) of the Nigerian Stock Exchange (NSE) has disclosed that the Nationalisation of three Banks in Nigeria has eroded Market Capitalisation by N30 billion.

This was contained in a Statement Wednesday by Wole Tokede, Seniour Manager, Corporate Communications of the NSE and made available to InvestAdvocate in Lagos Nigeria.

According to the Statement, Onyema said that the Management of the Nigeria’s Exchange took proactive measure of briefing Stockbrokers on the development before the commencement of trading on Monday August 08 2011. “This had helped to stem the slide of the NSE All Share Index to 1.9 percent despite putting the three Banks on full suspension, which eroded N30 billion of Market Capitalisation, and five on technical suspension” he said.

The NSE CEO affirmed that the recent development happened within the backdrop of the downgrading of the United States (US) credit rating by Standard & Poors (S&P) last week, sending the Global Financial Markets tumbling on Monday. “The Dow Jones Index experienced a decline of 5.55%, FTSE 100 saw a decline of 3.39%, the DAX was down by 5.02% and CAC 40 declined by 4.68%” he said.

In the same vein, the NSE has appealed to investors not to be disillusioned about the current happenings in the Market and said its Management would not renege in its duty of protecting the interest of investors in the Nation’s Stock Market.

Onyema who gave the appeal Tuesday said that the Stock Exchange believes that the actions taken by the Central Bank of Nigeria (CBN), Nigerian Deposit Insurance Corporation (NDIC) and the Asset Management Corporation of Nigeria (AMCON) should bring to an end the Banking crisis and help stabilise the Nigerian Financial Markets in due course.

He also reacted to some Newspaper Reports on Tuesday that the Nigeria’s Exchange had directed Brokers to move their accounts from the three Nationalised Banks (AfriBank Plc, Bank PHB Plc, Spring Bank Plc), “there was no truth in the Reports” Onyema said

“Since the new Banks (Keystone Bank Limited, Mainstreet Bank Limited and Enterprise Bank Limited) have assumed the Assets and Liabilities of the Nationalised Banks, they continue to settle Capital Markets related transactions” the NSE CEO affirmed.

While re-affirming the Commitment of the NSE in protecting the interest of investors in the Nigerian Capital Market (NCM).