Between May 29, when the President Muhammadu
Buhari administration was inaugurated, and
Thursday, investors in the equities segment of the
Nigerian Stock Exchange lost N1.306tn, a review of
the performance of the stock market has shown.
According to market operators and analysts, the
huge loss suffered by the investors is largely due
to the lack of clear policy direction by the current
government, the protracted delay in appointing
ministers and other negative developments in the
economy.
These, they said, included the foreign exchange
controls put in place by the Central Bank of
Nigeria, the decision of JPMorgan to remove
Nigeria from its government bond index, and the
declining Gross Domestic Product growth.
Meanwhile, hopes that the appointment of
ministers by the President will help halt the losses
and spur the recovery of the stock market have
started to fade, with investors unimpressed by the
list of ministerial nominees.
Rather than the positive reaction that greeted the
declaration of Buhari as winner of the presidential
election and the appointment of Mr. Ibe Kachukwu
as group managing director of the Nigerian
National Petroleum Corporation, the market has
reacted negatively to the ministerial list.
The stock market had risen by N904bn or 8.4 per
cent, its biggest rise in a day, on April 1, the day
after Buhari was returned as winner of the election,
and it rose for four straight days after Kachukwu’s
appointment.
Capital market operators and analysts had hoped
for a similar reaction with the release of the first
batch of nominees for ministerial appointments
after a four-month wait during which foreign and
some Nigerian investors, who had exited the
market due to the uncertainties surrounding the
elections and subsequently the economic policy
direction of the new government, stayed away.
However, since Wednesday last week, when the
ministerial list was sent to the Senate, the stock
market had closed on a negative note, with the
market capitalisation declining by N377bn or 3.51
per cent in five trading days.
“So far, based on what has been released, the
market is not impressed,” the Chief Executive
Officer, High Cap Securities Limited, Mr. David
Adonri, told our corresponded in a telephone
interview.
Explaining further, he said, “We are seriously
worried in the market that the bear run has not
been reversed so far. For the past two quarters or
so, the Gross Domestic Product had been on a
decline, but we thought that some other things
could be done by the government to restore
investors’ confidence.
“So, we were looking forward to that list to give
that impetus to the restoration of investors’
confidence.”
He, however, said the market had interpreted the
list to be unhelpful because it did not contain
technocrats who the market had confidence in to
make a positive difference in the economy.
“That is because most of them (the names on the
list) are politicians who have been recycled,
whereas the market was looking forward to having
well-tested and experienced technocrats to
properly influence fiscal policies,” Adonri said.
The managing director of one of the top capital
market operators said rather than boost investor
confidence, the list had increased uncertainty in the
future of the market and led to doubts about the
ability of the Buhari administration to meet
expectations.
The MD, who spoke on condition of anonymity,
said, “The key thing is that the list so far sent
does not inspire confidence in investors and the
reason is very simple. Who from the list should
head the Ministry of Finance? Who should head the
Ministry of National Planning? Who should head
the Ministry of Industry, Trade and Investment on
that list?”
He explained that because those questions were
difficult to answer, investors were being cautious.
“Why would investors become aggressive with
their investment now? I think it is clear that
investors do not like the list. The day Kachukwu
was appointed, the market rose for three days and
now that 19 others were nominated, and the
market goes backward.”
On his part, the Chief Executive Officer, Enterprise
Stockbrokers Limited, Mr. Rotimi Fakayejo, said a
major problem with the list was that there were no
technocrats on it.

SOURCE : http://www.punchng.com/business/business-economy/capital-market-investors-lose-n1-3tn-under-buhari/

Hmmmm,where are we heading to?

Nigeria has become one day, one bad news. how did we find ourselves to this kind of mess

DEAD BODY GET ACCIDENT YEKPA, NA DOUBLE WAHALA FOR DEAD BODY AND THE OWN OF DEAD BODY. THIS ONE NA SMALL THING NA MORE TO COME

katazozo:
Hmmmm,where are we heading to?

back to Egypt.

erunz:
DEAD BODY GET ACCIDENT YEKPA, NA DOUBLE WAHALA FOR DEAD BODY AND THE OWN OF DEAD BODY. THIS ONE NA SMALL THING NA MORE TO COME

our fellow Nigerians forced all of us into this mess

Change is here, but on negative side.