How Presidential Election Caused Loss Of N85bn In The Nigerian Stock Market

By Ikenga Chronicles February 27, 2019

How Presidential Election Caused Loss Of N85bn In The Nigerian Stock Market

As a result of the presidential poll which was held in the last few days, the market capitalisation of listed equities on Tuesday recorded a whooping N85 billion loss within six hours of trading in the market capitalization market.

The market capitalization opened at N12.194 trillion, shed N85 billion or 0.69 per cent to close at N12.109 trillion.Also, the All-Share Index lost 226.30 points or 0.69 per cent to close at 32,473.82, compared with 32,700.12 recorded on Monday.

The development was lamented by Ambrose Omordion, the Chief Operating Officer, InvestData Ltd as reported by Premium Times.

He noted that the smart money that pushed the market up with expectations that the opposition would win the presidential election were leaving the market.

He added that some investors who entered the market in anticipation that the opposition economic policy and reforms would support market growth were taking profit ahead of earnings season.

“This pullback may not last as a result of 2019 dividend declaration season as dividend yield of financial service stocks are high and attractive due to low prices,” Mr Omordion stated.

Nestle dominated the losers’ chart, dropping by N70 to close at N1,510 per share.

Union Bank of Nigeria trailed with a loss of 60k to close at N6.65, while FBN Holdings was down by 30k to close at N8 per share. Conversely, Guinness led the gainers’ table during the day, gaining N2.05 to close at N67.15 per share.