When President Buhari was announced winner of the 2015 Presidential Elections on March 31, 2015, the All Share Index recorded what is now known as a “Bull-Hari” effect. It recorded about 10 straight day of gains as investors basked in the excitement of a peaceful election and surprising acceptance of defeat by President Goodluck Jonathan. On the day the result was announced the marked gained a whopping 8.3% and followed that with another 3.9% gain.
Turn for the worse
Since then the stock market has recorded months of volatility as investors continue to be kept in the dark about the economic policies of the government. Investors both local and international have basically given up on the economy fleeing Nigerian stocks. The fall in oil prices, continued dithering by the CBN on its forex policies, corruption allegations against past governments, bankrupt states, drop in GDP and rising unemployment have all contributed to the negative outlook placed on the Nigerian economy thus damaging investor sentiments further.
This has now resulted in a massive loss of value for the exchange. As at August 26th Nigerian Stocks have lost a massive N2.46 trillion in value since President Buhari was announced winner. From a market capitalisation of N12.13 trillion on the second of April 2015, it closed at N9.67 trillion Wednesday August 26th 2015.
Sure, the president only assumed power May 29, 2015 but we believe the GEJ Government basically turned lame duck since then. Even at that the stock market has lost N1.89 trillion since May 29. It has not climbed above N11.6 trillion since May 28, 2015.
No end in sight?
No one knows how soon things will reverse or how worse this could get in the coming months. For now the market is in dire need of an economic direction from the government. Despite the macro economic downturn being experienced around the world, a firm course of action from this Government will at least provide a soft landing for the market to bottom out.