Stock Market Plummets despite President Jonathan’s Visit
President Goodluck Jonathan last week Thursday visited Nigeria’s monumental business and investment institution, the Nigerian Stock Exchange, located in Lagos in a bid to convince investors not to enter panic mode by pulling out their investments out of the country and also assuring them that the difficulties that has recently plagued the economy would be surmounted but such assurances from the President has not reflected in the stock market as the market recorded a burgeoning loss of over N513 billion, six days after the President’s visit.
The NSE All-Share index depreciated to a low level of 0.4% meaning that the market has now lost 4.6% of its value since last week Friday when the sell-offs began with consumer goods badly affected and being the worst hit of unproductive trading at the stock exchange.
The aforementioned market capitalization represents the total value of shares traded on the exchange which opened at N10.250 trillion on Monday and had a significant drop of N428.762 billion at the close of business yesterday which left the total value index at N9.822 trillion.
While the continuous falling of stock prices might be unconnected with the President’s visit, his buoyant speech reassuring investors of the safety of their investment has not been fully acknowledged by the market as the market also continues to suffer from the tensed political situation ahead of the upcoming general elections.
Mr. Tunde Oyediran, a stockbroker, while speaking in an interview with Daily Times via telephone said that the stability in the foreign exchange market was part of the factors dragging the Nigerian market down. He further disclosed that the decision of the Central Bank of Nigeria (CBN) to increase the Cash Revenue Ratio has fixed the market in a weak position.