THE quantum gains occasioned by General Muhammadu Buhari’s election as President is gradually being reversed as market capitalization and the naira has slightly depreciated.
ENCOMIUM Weekly’s investigations revealed that the stock market did lose over N145 billion at the close of trading on Monday, April 13, 2015.
The drop is against the backdrop of market capitalization of N12.135 trillion recorded after Buhari’s win in the first week of April. Market capitalization stood at N11.990 trillion on Monday, April 13, 2015.
Similarly, the fortunes of the naira which gained over N30 against the US dollar shortly after Buhari’s victory also dwindled as the local currency’s exchanged rate on Monday (April 13) was N205 to one dollar.
The dollar was N190 at black market when the euphoria of Buhari’s win prevailed.
Financial experts, we consulted on the development urged investors not to panic as key indicators still look pretty good.
“There is no cause for alarm. What has happened was expected. The stock, for instance, is still at a profitable zone, while the exchange rate crisis we experienced earlier in the year is gradually returning to normalcy,” an investment expert squealed.
We were also told that the change of government from next month, will redirect the economy and shore up investor confidence.
Nigeria, Africa’s largest economy was in a grave state as a result of falling oil prices and pre-election shock. Things looked a bit rosy shortly after the defeat of incumbent President Jonathan and the peaceful conduct of the presidential election. This ushered in some gains in the stock market and rise in the exchange value of the hitherto battered and wobbling naira.
But now, a marginal depreciation of stocks and the naira seems to be reversing the quantum gains applauded by stakeholders.