Trading on the Nigerian Stock Exchange (NSE) on Thursday continued to react negatively to the outcome of the presidential election with the market capitalisation losing N196 billion to close below N12 trillion mark in February.
Market capitalisation for last trading day in February shed N196 billion or 1.63 per cent to close at N11.828 trillion against N12.024 trillion on Wednesday, despite dividend of N16 declared by Dangote Cement.
Specifically, the market capitalisation shed N196 billion or 1.63 per cent to close at N11.828 trillion compared with N12.024 trillion achieved on Wednesday.
In the same vein, the All-Share Index lost 525.54 points or 1.63 per cent to close at 31,728.70 when compared with 32,244.24 recorded on Wednesday.
A market analyst, Mr Ambrose Omordion, attributed the development to investors disappointment over the outcome of the elections.
Omordion said smart investors that took position earlier in the market ahead of the presidential election and earnings seasons were disappointed.
He said that the outcome of the election failed to meet their expectations with many of them resorting to profit taking and movement of funds to the fixed income market with high interest and lower risk.
According to him, investors are dumping their shares in spite of impressive earnings reports and high yields.
He said that apart from the outcome of the elections, everything was against the stock market ranging from delayed budget, expiration of the tenure of the Central Bank of Nigeria (CBN) governor by June.
“The only factor for the stock market now is this earnings season, because nothing will happen between now and May 29,” Omordion said.
He said that 2019 budget implementation would likely commence in July and the Central Bank of Nigeria governor tenure likely to expire in June contributed to the current trend.
Omordion said that the trend might likely continue unless there was change in economic policies and reforms by the President re-elect.
He, however, called on investors to target pension funds stocks that were consistent in dividend payment in the last four years.