In the first 100 days of President Muhammadu Buhari’s government, investors in Nigeria’s stock market reportedly lost N1.6 trillion. This is according to going a report by Vanguard News on activities at the Nigerian Stock Exchange (NSE) as at close of business on Friday September 4th.
According to this report, the NSE market capitalization (total value of all shares in the NSE) closed at N10.1 trillion, a downward trend by over 14 per cent from N11.7 trillion closing value on the last day of the former President Goodluck Jonathan’s administration ending May 28, 2015.
The All Shares Index (ASI) also dropped by over 13 per cent to 29,511.1 points from 34,310.9 within this same period.
According to market analysts, this development makes the Nigerian economic policy appear hazy and uncertain these past 3 months.
The declining oil revenue and the absence of a solid policy response to it has also been pin-pointed as a contributor to this gloomy state.
Afrinvest Group, a Lagos-based investment banking house, has commented on this trend “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.
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Afrinvest keeps a positive outlook on the future “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.
“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.
Inland Town! 2015.