Temitope
Temitope Akinola
Investments in the Nigerian Stock Market have gone down by N2.5 Trillion since the emergence of President Muhammadu Buhari at the March 31st,2015 Presidential Election, Nairametrics observes.
According to Nairametrics, the All Share Index recorded what is now known as "BullHari" effect. It initially recorded about 10 straight days of gain as investors were motivated by the peaceful election and the kind heart of Ex-President Goodluck Jonathan at accepting defeat. The market gained 8.3% and 3.9% on successive two days when election results were announced.
But after this short period of excitement, the stock market has recorded months of volatility as investors are being kept in the dark about the economic policies of the government. According to the analysis, both local and foreign investors have basically given up on the economy, fleeing Nigerian stocks.
Oil price crash, CBN forex policies, corruption allegation against past governments, bankrupt states, drop in GDP and rising unemployment among other things have had negative impacts on the economy thus further damaging investor sentiments.
The result of this is a massive loss of value for the exchange. As at August 26 market day, Nigerian stocks have lost up to a sum of N2.46 trillion in value since President Buhari was announced the winner. From a market capitalisation of N12.13 trillion on the second of April 2015, the market closed at N9.67 trillion on Wednesday, August 26th, 2015.
Nairametrics observed that although the president assumed power on May 29, 2015, it believed that GEJ government basically turned lame duck since the elections. And it is obvious that the stock market has lost N1.89 trillion since May 29 and it has not climbed above N11.6 trillion since May 28, 2015.
In Nairametrics view, it is uncertain how soon things will reverse or how worse it could get in the coming months. The market urgently needs an economic direction from the government. A firm course of action from the Nigerian government will definitely provide a soft landing for the market to bottom out despite the macroeconomic downturn being experienced around the world
According to Nairametrics, the All Share Index recorded what is now known as "BullHari" effect. It initially recorded about 10 straight days of gain as investors were motivated by the peaceful election and the kind heart of Ex-President Goodluck Jonathan at accepting defeat. The market gained 8.3% and 3.9% on successive two days when election results were announced.
But after this short period of excitement, the stock market has recorded months of volatility as investors are being kept in the dark about the economic policies of the government. According to the analysis, both local and foreign investors have basically given up on the economy, fleeing Nigerian stocks.
Oil price crash, CBN forex policies, corruption allegation against past governments, bankrupt states, drop in GDP and rising unemployment among other things have had negative impacts on the economy thus further damaging investor sentiments.
The result of this is a massive loss of value for the exchange. As at August 26 market day, Nigerian stocks have lost up to a sum of N2.46 trillion in value since President Buhari was announced the winner. From a market capitalisation of N12.13 trillion on the second of April 2015, the market closed at N9.67 trillion on Wednesday, August 26th, 2015.
Nairametrics observed that although the president assumed power on May 29, 2015, it believed that GEJ government basically turned lame duck since the elections. And it is obvious that the stock market has lost N1.89 trillion since May 29 and it has not climbed above N11.6 trillion since May 28, 2015.
In Nairametrics view, it is uncertain how soon things will reverse or how worse it could get in the coming months. The market urgently needs an economic direction from the government. A firm course of action from the Nigerian government will definitely provide a soft landing for the market to bottom out despite the macroeconomic downturn being experienced around the world
