The Nigerian Stock Exchange, NSE, has recorded a loss of N823 billion in the value of the market between when President Muhammadu Buhari was inaugurated up till last Friday, July 10.
Although investors had reacted positively to the victory of Buhari in March as market rallied for 10 straight days, longest gain streak since December 2012, the market began to see fluctuations afterwards. The market added N1.8 trillion in the first four days of that rally.
The market,which dipped from N11.478 trillion at the beginning of the year to N10.718 trillion in February following pre elections anxiety, leaped above N11 trillion after the presidential election.
On the eve of the inauguration of Buhari’s administration, the market stood at N11.659 trillion.
However, the delay in the appointment of ministers after over 40 days in office, is putting equity investors on edge, who are waiting to know the policy direction of the Buhari’s government before taking investment decisions.
A stockbroker, who spoke over the weekend said: “Given the pedigree of President Buhari, his victory at polls was enthusiastically received. Expectations have been high. But the non appointment of key government officials, including ministers, has dampened confidence of many investors. That is why the market has been sluggish.As you know, investing in stocks is investing in the future of those companies.
But now, it is difficult to tell the policy direction. That is why investors are reluctant to invest for now. I believe by the time the government appoints ministers and make its policy direction known, the market will pick up again.”
To this end,, the stock market has dropped from N11.659 trillion, on the eve of inauguration to N10.836 trillion last Friday, translating into about seven per cent decline.