Presidential election result: Nigeria stock market loses N85bn in 6 hours

Presidential election result: Nigeria stock market loses N85bn in 6 hours

- As results of the 2019 general election is being released by INEC, the sum of N85 billion has been lost in six hours on the floor of the Nigerian stock exchange

- This was attributed to profit taking as a result of the presidential poll

- Ambrose Omordion, the chief operating officer, InvestData Ltd., attributed the market pullback to profit taking embarked by some smart investors

The market capitalisation of listed equities on Tuesday, February 26, shed N85 billion in six hours of trading to what traders attributed to profit taking as a result of the presidential poll, the News Agency of Nigeria (NAN) reports.

The news medium reports that, specifically, the market capitalisation, which opened at N12.194 trillion, shed N85 billion or 0.69 per cent to close at N12.109 trillion.

Part of the report read: "Also, the All-Share Index lost 226.30 points or 0.69 per cent to close at 32,473.82, compared with 32,700.12 recorded on Monday. Ambrose Omordion, the chief operating officer, InvestData Ltd., attributed the market pullback to profit taking embarked by some smart investors.

"Omordion said the smart money that pushed the market up with expectations that the opposition would win the presidential election were leaving the market.

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"He said some investors who entered the market in anticipation that the opposition economic policy and reforms would support market growth were taking profit ahead of earnings season.

“This pullback may not last as a result of 2019 dividend declaration season as dividend yield of financial service stocks are high and attractive due to low prices."

Similarly, the Central Bank of Nigeria (CBN) has injected 210 million dollars into the inter-bank Foreign Exchange Market to ensure adequate supply of foreign exchange to customers.

The CBN director, Corporate Communications Department, Isaac Okorafor, in a statement on Tuesday, noted that 100 million dollars was offered to authorised dealers in the wholesale segment of the market.

He said customers in the Small and Medium Enterprises segment received 55 million dollars and those requiring foreign exchange for tuition fees, medical payments and Basic Travel Allowance among others, received 55 million dollars.

Okorafor reassured the public that the bank would continue to intervene in the interbank Foreign Exchange Market in line with its desire to sustain liquidity in the market and maintain stability.

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The CBN on Friday injected 268.4 million dollars and CNY46.3 million into the Retail Secondary Market Intervention Sales (SMIS) segment.

Meanwhile, Legit.ng had reported that financial experts say the decision of the Independent National Electoral Commission (INEC) to postpone the presidential and National Assembly elections will cost Nigerian businesses huge financial loss.

The experts say the postponement will cost businesses in the country about $7.605 billion (N2.737 trillion), amounting to about two per cent of Nigeria’s Gross Domestic Product (GDP), which is approximately $427 billion.

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Source: Legit

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