Global Financial Crisis and Nigerian Stock Market Volatility

GLOBAL FINANCIAL CRISIS AND NIGERIAN STOCK MARKET excitableness Abdul ADAMU Department of Business Administration, Nasarawa State University, Keffi Nasarawa State. adamuabdulmumeen@yahoo.com uooba1009@gmail.com Tel. +2348029445391, +2348064851648. Paper presented at the subject field Conference on Managing the challenges of Global Financial Crisis in develop Economies organised by the Faculty of Administration, Nasarawa State University, Keffi, Nasarawa State Nigeria held in the midst of March 9 11, 2010. Abstract The current global financial crisis is no longer news but a reality. Our policy makers in the country have been proven wrong based on their argument that the country was insulated. Some of the sectors that have felt the lovingness of the crisis are the banking sector and the stock market. In the stock market, investors broken trillions of naira due the downward fall in the prices of stock. Based on this, the study assesses the extent of the stock market volatility in the period preceding the crisis and the period of the crisis. Using the All part Index, the returns for various months were computed, descriptive statistics of the returns was calculated and the volatility of the market was estimated victimization the standard deviation.

It was found that the stock market is highly fickle in the period of the financial crisis than the period preceding it. The testimonial is that the depth of instruments in the stock market should be alter in terms of fixed securities than equity instruments. Introduction The global sparing crisis, which first emerged as a financial crisis in champion country, has now replete(p)y installed itself with no bottom yet in sight. The world economy is in a deep recession, and the risk of falling into a deflationary trap cannot be ignore for many important countries (UNCTAD, 2009). The recent global economic crisis was a result of economic and political events in the United States. What started with revise federal policy and poor... If you want to get a full essay, order it on our website: Orderessay

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