The value of securities listed on the Nigerian Stock Exchange (NSE) dropped by N850 billion between January and July 16, 2015, because of the impact of insecurity, devaluation of the naira and investors’ apathy.
LEADERSHIP’s investigation showed that the market which opened the year with a capitalisation of N11.478 trillion, shed N850 billion to close trading on July 16, 2015, at N10.628 trillion.
Also, the NSE All Share Index (ASI) declined by 10.41 per cent from 34,657.15 at which it opened the year to 31,047.99 during the review period.
The managing director of Capital Bancorp, Mr Higo Aigboje, said that investments or investing in the stock market is for the long term and it is important to let investors’ know that. There are some months in the year that the market was positive but since the inauguration of the new government, the market has dropped about 7.89 per cent.However, between the period after the presidential election and the inauguration, the market went up by 10.38 per cent.
The market year-to-date from January to last Tuesday has recorded a 9.48 loss.
“With this it appears that the market was buoyant and positive after the election. However, the market is reacting to currency issues and inflation, and there are number of factors which borders on security,” Aigboje said.
He remarked further that, “Looking at the appointments that were recently made, there is no reason the stock market should not rebound in the third quarter because minsters would have been appointed and the economic policy direction of the government would have been announced. The CBN is doing a good job but if there is more clarity round the foreign exchange, we will see foreign investors returning with a bit more aggressiveness.”
Source : Leadership