The Nigerian capital market has recorded abysmal performance in the last two years of President Muhammadu Buhari’s administration as investors in the nation’s stock market lost N1.93 trillion worth of their investments in companies quoted on the Nigerian Stock Exchange, NSE.
According to Vanguard, specifically, data from the NSE showed that the stock market capitalisation, which represents total value of stocks, traded on the Exchange declined by N1.93 trillion or 16.6 percent to N9.718 trillion at the close of trading on Friday, May 19, 2017 from N11.658 trillion it closed on May 28, 2015.
Similarly, another stock market gauge, the NSE All-Share Index declined by 6,196.93 points or 18.1 per cent to close on Friday May 19, 2017 at 28,113.44 points from 34,310.37 points it closed on May 28, 2015. Since Buhari took over on May 29, 2015, the market has been on bearish trend, until after the first quarter this year that the market started witnessing bullish run; though it has not been steady as both the bulls and bears continue to interface.
A breakdown of the market performance, according to Vanguard’s investigation, for the past two years showed that in the first year of President Buhari’s administration, the market lost N1.732 trillion as the NSE market capitalisation on May 27, 2016 closed at N9.926 trillion from N11.658 trillion on May 28,2015. In the same vein, All Share Index dropped by 5,408.12 points or 15.8 per cent to close at 28,902.25 points on May 27, 2016 from 34,310.37 points it closed on May 27, 2016.
In the second year of President Buhari’s administration, the market lost over N208 billion, as the market capitalisation closed on May 19, 2017 at N9.718 trillion fromN9.926 trillion it closed on May 27, 2016. The market for the first one year of this administration was largely dominated by cautious and speculative tendencies despite cheap valuations of equities across the sub sectors on the Exchange on the backdrop of weak investors’ confidence, which was driven mainly by decline in economic activities.
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