Investors in the Nigerian equities market witnessed the largest single daily loss since the beginning of 2019 after Nigeria’s presidential election with All Share Index dipping by 1.63per cent on the last trading in the election month. However, the trend may be short-lived as the market recorded a gain on Friday, the first day of trading in March, reports Bamidele Famoofo

The four business days that followed the presidential elections in Nigeria won’t be forgotten in a jiffy by investors in the Nigerian equities market as a big drop recorded in market capitalisation and All Share Index also translated to a big loss for them.

Market capitalization dropped from about N12.194trillion on Monday, 25th February to about N11.829trillion on Thursday same week, representing N365billion loss in investors’ equities portfolio.


The NSE-All Share Index (ASI), which tracks performance of stocks listed on the platform of the Nigerian Stock Exchange (NSE) as a result of sell-offs by investors declined from 32,700.12 points to 31,721.76 points on the last trading day in the month of February.

A report from Cordros Capital Limited on how the market fared in the review period indicated that the drop in ASI on the last day in February was the largest single day decline recorded in the market so far in 2019 as it attributed the loss to sell-offs across bellwether stocks in the equities market.

“Against marked sell-offs across bellwether stocks, the Nigerian equities market closed the last session of the month on a negative note as the ASI dipped by 1.63% — largest single day decline since Jan 31, 2019 — to 31,718.70 points”, the report disclosed in part.

As a result of the performance in the last four days in February, Month-to-date returns moderated to 3.80 percent while Year-to-date stood at 0.92 percent, according to Cordros Capital.

It was a all round loss especially on Thursday, February 28, 2019 with Banking sector index closing negative to the tune of -4.56 percent, meaning that investors who hold bank shareslost about five percent of value of their stock in that sector for the day. Equally, investors in the Industrial Goods sector shed -2.18 percent of value on the same day. Others are Consumer Goods (-2.02%), Oil & Gas (-1.56%), and Insurance (-0.97%). Notable stocks include, GUARANTY (-6.85%), WAPCO (-0.39%), NB (-4.45%), OANDO (-9.92%), and AIICO (-5.19%), respectively.

Meanwhile, experts have assured investors in the market that the fundamentals for recovery remain strong medium to long term even while the market continues to digest election results.

“As the market continues to digest election results, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and compelling valuations remain supportive of recovery in the mid-to-long term”, Cordros Capital said.

Meanwhile, the month of February could not be labeled a period of doom for investors as it ended on a positive note overall as ASI appreciated by 3.8 percent to close on Thursday at 31,721.76 points compared to 30,557.20 points which opened the second month of the year.

Also, compared with the performance in January when ASI closed on a declining note, investors amassed N434billion from trading as market capitalization moved up from N11.395 trillion in January to close at N11.829 trillion on February 28, 2019.

As earlier reported by THISDAY, the market had recorded a decline in January as general elections jitters kept most investors away from the market. However, investors increased their patronage in February as they anticipated the release of corporate results for the year ended December 2018. Also, some investors felt the political uncertainties were reducing. Hence, the market appreciated in the month of February.

Besides, the growth would have been higher but for the decline recorded in the last two days of the month after the results of the presidential election were announced and President Muhammadu Buhari declared the winner.

The NSE ASI had appreciated to a high of 32,700.12, while market capitalisation rose to N12.194 trillion on Monday. However, the NSE ASI closed the month at 31,721.76, while market capitalisation ended at N11.829 trillion.

A review of the performance of the equities market a week penultimate the elections showed that the NSE All-Share Index and market capitalisation depreciated by 0.61 percent to close the week at 32,515.52 and N12.126 trillion respectively.

Breakdown of performance in the week showed that a total turnover of 1.481 billion shares worth N17.647 billion in 20,449 deals were traded by investors on the floor of the Exchange in contrast to a total of 2.834 billion shares valued at N28.138 billion that exchanged hands last week in 28,739 deals.

But contrary to the results, the week after the elections when all sectors recorded losses especially on the last day of the month of February, the Financial Services Industry (measured by volume) led the activity chart with 1.038 billion shares valued at N10.170 billion traded in 12,232 deals; thus contributing 70.07 percent and 57.63percent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 193.204 million shares worth N306.521 million in 1,330 deals. The third place was Consumer Goods Industry with a turnover of 72.042 million shares worth N4.381 billion in 2,990 deals.

However, in line with the assurances from experts, the market on Friday, March 1, the first day of trading in March, launched a recovery bid as ASI appreciated by 0.34 percent. Index value moved up to 31,827.24 while market capitalisation increased to N11.868 trillion having gained N40billion in one day.

https://www.akelicious.net/2019/03/after-record-loss-nigerias-equities.html

Izzokay!!!

Happy. I might not be a 100 fan of Buhari(though i supported him against atiku for the presidential), but I am someone that rejoices in good news and hope the good news last forever not those that rejoices in 400billion lost though it was 365 and will start saying these figures were forged. Nigeria shall be great under buhari by His grace.

 Also, some investors felt the political uncertainties were reducing. Hence, the market appreciated in the month of February.

Real businessmen know the election has been won and lost, only yam-legged miscreants hawking gala and fan yogo along VI-Apapa road are still pushing atiku to worse catastrophy.

Only delusional flat head pigs think atiku still has a strand of chance after a 4million defeat margin. Keep deceiving yourselves.

.

Good

If you know that the op lost you after the first paragraph let's gather here

Meanwhile, the month of February could not be labeled a period of doom for investors as it ended on a positive note overall as ASI appreciated by 3.8 percent to close on Thursday at 31,721.76 points compared to 30,557.20 points which opened the second month of the year".

"the market on Friday, March 1, the first day of trading in March, launched a recovery bid as ASI appreciated by 0.34 percent. Index value moved up to 31,827.24 while market capitalisation increased to N11.868 trillion having gained N40billion in one day"

snrman:

Atiku fans were like it the stock market crashed because atiku lost the election not knowing it was cus of political instability

It was. Investors didn't pull out even during the election, which is the height of political instability. As soon as results were announced (a result which went against all common sense) everybody pulled out their money and invested in South Africa.

CBN done pump money enter stock market to quell the obvious tension. Save this comment, there will be a massive downward spiral in a few months, u can't fill your store with empty cartons of indomie and be forming 'Mega Indomie Depot'. When the chips are down, you will understand the full meaning of "my next four years will be tough"

Atiku fans were like it the stock market crashed because atiku lost the election not knowing it was cus of political instability

Still not safe until after the inauguration

Political instability caused it

While corrupt politicians started selling off their stocks upon hearing buhari won and EFCC are back fully, prices dropped as they are selling at any rate, similar thing happened at Abuja real estate markets... legitimate business people are seizing the opportunity to get stocks and assets while some are wailing online.


If there's anything I learnt from currency trade and forex fundamental forecasting , the moment a sudden event gets the market bearish sharply plugin at it's lowwest So as to benefit heavily from it's bullish rebound.

Panic selling is not necessary a bad thing, since it isn't caused by a long-term events like war or natural disaster

Ijaycool:


It was. Investors didn't pull out even during the election, which is the height of political instability. As soon as results were announced (a result which went against all common sense) everybody pulled out their money and invested in South Africa.

CBN done pump money enter stock market to quell the obvious tension. Save this comment, there will be a massive downward spiral in a few months, u can't fill your store with empty cartons of indomie and be forming 'Mega Indomie Depot'. When the chips are down, you will understand the full meaning of "my next four years will be tough"

all of u praying that the next 4 years will b tough hw do u all reason or are u not in the same nigeria i am so why praying for bad even wen ur preferred candidate didn't win no country does that

......

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WinningEleven:
If you know that the op lost you after the first paragraph let's gather here

WinningEleven:
If you know that the op lost you after the first paragraph let's gather here

snrman:
all of u praying that the next 4 years will b tough hw do u all reason or are u not in the same nigeria i am so why praying for bad even wen ur preferred candidate didn't win no country does that

I am sorry if you misunderstood me.
I wasn't the one who said it will be tough.
Na Gen. BooHarry talk am.

Is this the next level buhari warned us about

Ijaycool:


It was. Investors didn't pull out even during the election, which is the height of political instability. As soon as results were announced (a result which went against all common sense) everybody pulled out their money and invested in South Africa.

CBN done pump money enter stock market to quell the obvious tension. Save this comment, there will be a massive downward spiral in a few months, u can't fill your store with empty cartons of indomie and be forming 'Mega Indomie Depot'. When the chips are down, you will understand the full meaning of "my next four years will be tough"

"CBN done pump money enter stock market"

I just learnt something new today!

topaz321:



"CBN done pump money enter stock market"

I just learnt something new today!

Me too.

I never knew cbn pumps money enter stock market, but now I know.

The level of ignorance about the stock market is irritating, people are just mixing politics with the stock market,if you do that, you will be disappointed.

There was a time the market capitalization was 21 Trillion naira

Ijaycool:


It was. Investors didn't pull out even during the election, which is the height of political instability. As soon as results were announced (a result which went against all common sense) everybody pulled out their money and invested in South Africa.

CBN done pump money enter stock market to quell the obvious tension. Save this comment, there will be a massive downward spiral in a few months, u can't fill your store with empty cartons of indomie and be forming 'Mega Indomie Depot'. When the chips are down, you will understand the full meaning of "my next four years will be tough"

you are wrong obviously you're misinformed ... third world war countries elections are prone to instability, the fear of unknown was why the investors pull back ,the most decisive election for our economy is over, shouldnt be a surprise if things are returning to normal ,its for our own good those hoping & praying for badnews to justify atiku could av been better ..naa una go suffer am pass.
A govt driven with infrastructural development does not need running around to beg investors they will come ... these govt seems to be committed to infrastructures if they can keep it up investors will troop in like never before. dangote refinery holds hope
if buhari says " tough" he is only referring to looters & there beneficiaries..perhaps you belong to the later

Ijaycool:


It was. Investors didn't pull out even during the election, which is the height of political instability. As soon as results were announced (a result which went against all common sense) everybody pulled out their money and invested in South Africa.

CBN done pump money enter stock market to quell the obvious tension. Save this comment, there will be a massive downward spiral in a few months, u can't fill your store with empty cartons of indomie and be forming 'Mega Indomie Depot'. When the chips are down, you will understand the full meaning of "my next four years will be tough"

Lol. I can't begin to explain how wrong your comment is. Just putting this here so that other ignorant people wouldn't believe your lies.

Anyi3:


Lol. I can't begin to explain how wrong your comment is. Just putting this here so that other ignorant people wouldn't believe your lies.

lafuria1:
The level of ignorance about the stock market is irritating, people are just mixing politics with the stock market,if you do that, you will be disappointed.

You are not being realistic.

The stock market is driven by sentiments, all kind of sentiments.

If it is not driven by political sentiment how come the same Nigerian Stock Exchange gained significantly when Buhari was announced winner in 2015?

That was when they thought he was capable of doing what he said he would.

Everyone is now aware that he lacks capacity and very disappointed the election was stolen.

Nigeria: Buhari's Victory Triggers N903 Billion Gain in NSE Capitalisation

https://allafrica.com/stories/201504020363.html

ericsmith:



you are wrong obviously you're misinformed ... third world war countries elections are prone to instability, the fear of unknown was why the investors pull back ,the most decisive election for our economy is over, shouldnt be a surprise if things are returning to normal ,its for our own good those hoping & praying for badnews to justify atiku could av been better ..naa una go suffer am pass.
A govt driven with infrastructural development does not need running around to beg investors they will come ... these govt seems to be committed to infrastructures if they can keep it up investors will troop in like never before. dangote refinery holds hope
if buhari says " tough" he is only referring to looters & there beneficiaries..perhaps you belong to the later

You are wrong. Buhari said "the next four years will be tough". Where did he mention looters? How did you come about looters?
Buhari's infrastructure is financed on loan from Chinese Exim Bank. There are trains in North Korean and many eastern European countries mind you, why are investors not going there because of infrastructure?

Every major financial institution has predicted very tough times for the Nigerian economy in Buhari's next four years.
You people labelled them looters.

Buhari himself has come out to tell you with his own mouth, yet you are still finding a way to excuse him.
Everything he says you people must find explanation for; but you come around to urge people to accept poverty and misery.

Who did this to you?

porka:


You are not being realistic.

The stock market is driven by sentiments, all kind of sentiments.

If it is not driven by political sentiment how come the same Nigerian Stock Exchange gained significantly when Buhari was announced winner in 2015?

That was when they thought he was capable of doing what he said he would.

Everyone is now aware that he lacks capacity and very disappointed the election was stolen.

Someone said CBN pumped money into the stock exchange. That's what I'm attacking bros.

Do you agree the person said rubbish?

porka:


You are wrong. Buhari said "the next four years will be tough". Where did he mention looters? How did you come about looters?
Buhari's infrastructure is financed on loan from Chinese Exim Bank. There are trains in North Korean and many eastern European countries mind you, why are investors not going there because of infrastructure?

Every major financial institution has predicted very tough times for the Nigerian economy in Buhari's next four years.
You people labelled them looters.

Buhari himself has come out to tell you with his own mouth, yet you are still finding a way to excuse him.
Everything he says you people must find explanation for; but you come around to urge people to accept poverty and misery.

Who did this to you?

Not every major financial institution predicted very tough times for the Nigerian economy in Buhari's next four years.

Bro, where are you getting these facts from.

Just give me 5, otherwise admit you're wrong and desist from spreading false news.