NSE Loses N258bn Post-Presidential Election

• NSE Loses N258bn Post-Presidential Election

The Nigerian Stock Exchange market lost a total of N258 billion in the week following the nation’s presidential election.

The All-Share Index declined by 2.12 per cent in the week ended March 1, 2019 to 31,827.24 points, down from 32,515.58 points recorded in the week ended February 22. The Year-to-date return also declined from 3.25 per cent to 1.26 per cent.

On a weekly basis, the value of listed equities declined from N12.126 trillion to N11.868 trillion. While the gauge of banking sector decreased by 5.88 per cent, consumer goods declined by 2.91 per cent, and Oil & Gas Index dipped by 1.33 per cent. Industrial goods, however, gained 0.93 per cent week-on-week.

“Given the reaction of investors to the election results, we highlight the possibility of negative sentiment trickling down into the market. That said, we expect bargain hunting to drive positive trading as investors take up undervalued stock leading to a mixed session at week start”, said research analysts at Vetiva Capital in their March 1, 2019 note.

The total volume of shares traded during the review week rose to 1.750 billion units, up from 1.478 billion units filed in the preceding trading week. The value of shares traded increased from N17.64 billion to N19.68 billion. Representing an increase of 11.53 per cent.

“We expect the yield on government instruments to moderate sharply in the short to medium term while sentiment for equities would improve as investors revert to fundamental drivers of stock market performance rather than political uncertainties”, research analysts at United Capital said in their March 1, 2019 note to investors.