Investors Counts Their lost: Lose N1.6trn in First 100 Days of Buhari Tenure

Statistical professional analysis and records in the Nigerian stock market has revealed that, Investors in the Nigerian stock market lost N1.6 trillion in the first 100 days of President Muhammadu Buhari’s government, going by report of activities at the Nigerian Stock Exchange (NSE) as at close of business last weekend.
 

The last day of President Goodluck Jonathan-led administration saw the NSE market capitalization moved up to N11.7 trillion closing value (total value of all shares in the NSE), as against N10.1 trillion, (down by over 14 per cent) at the Nigerian stock exchange market at the closed of last week Friday market activities.

Similarly, the key performance index of the exchange, the All Shares Index (ASI), dropped by over 13 per cent to 29,511.1 points from 34,310.9 within the same period.

Market analysts have described this development as a summation of local and foreign investors’ characterization of the economic policy environment as hazy and uncertain in the past three months.

They also attributed the negative turn of affairs in the stock market to the gloomy picture foisted on the economy by the combination of declining oil revenue and lack of a clear policy response to it.

In reaction to the economic developments in the first 100 days of Buhari’s regime, Afrinvest Group, a Lagos-based investment banking house, said: “Investors in the financial markets have remained on the sideline as a result of lack of fiscal policy direction from the president coupled with exchange rate uncertainty.

Notwithstanding, Afrinvest expressed optimism thus: “The President has promised to unveil his list of cabinet members in September. This is expected to catalyze the economy and the capital market to optimizing their potentials in the medium term.

“Our position is anchored on the fact that ministerial appointments, which are set to be concluded by September 2015, are expected to give the market a sense of direction of the Buhari-led government, consequently, activating improved market performance.

“Correspondingly, we expect economic activities in the second half of 2015 to improve relative to first half of 2015; thus, corporate earnings performances should mirror the economic outlook.

“Therefore, we place a higher weighting on the possibility of a fantastic positive overall return for medium to long term investors and also preach caution on short term speculative trading.”

Afrinvest Group had earlier said the economy growth rate would be down to 3.5 per cent as against 5 per cent it had projected this year.