Indications have emerged that the Nigeria’s stock market may rally if President Muhammadu Buhari loses this weekend’s election.
As contained in a report by Bloomberg which quoted analysts at citigroup, the Nigerian stock market will recover, ending a run that has seen it fall more than any other in the world in dollar terms since President Buhari came to office in May 2015.
According to the report, some foreign investors would prefer a government led by ex-Vice President and businessman, Atiku Abubakar.
However, while Atiku has pledged to float the naira, Central Bank Governor, Godwin Emefiele has refuted the proposed move as a recipe for disaster.
Reuters, in a separate report has it that the Nigerian stocks could see a relief rally once this weekend’s presidential election is off the way, as investors have started picking up shares to position for a post-election rally.
The Nigerian shares index lost 17.8 per cent in 2018, stood at 29,336 points in January, picked up to around 31,000 points at the moment and it is expected that the post-election rally could help lift it up to 35,000 points.
Analysts forecast that a win by either candidate, especially Atiku, would bring on a post-election fund inflow into Nigeria’s equities, after foreign investors pulled $2.1 billion out of the Lagos stock market in 2018.
“On stock exchange performance under either candidate, we expect to see significant inflows post-elections. There is this view that Atiku is a bit more pro-business so we could see a relief rally,” analysts at Stanbic said.
As Nigerians await the outcome of the upcoming weekend presidential election, President Buhari and his Vice, Prof. Yemi Osinbajo, would be hoping that their records on corruption, economy and security, which was their main focus, earn them a second four-year term in office, while Atiku and his fellow pro-business counterpart, Peter Obi hope their mapped out policies and strategies to get Nigeria working again secure them an opportunity to do so.
