Delayed cabinet: Equities market investors lose N124bn

The delay by President Muhammadu Buhari in appointing ministers and other key officials as well as the lack of clear information about his government’s policy direction have been major deterrents to investment in the nation’s capital market.

The Nigerian stock market(NSE) records another negative outing for last week, as broad sell-offs extended the negative week-on-week closing to the third week after the inauguration of the President on May 29.

Hopefully, with the president and law makers coming up with strategies for a way forward for the Nigerian economy, market should witness a positive direction very soon.

Specifically, the market capitalisation, went down by N124 billion to closed at N11.353 trillion on Friday, as against N11.477 trillion the previous week. The All share Index, decreased by 363.85 points or 1.08 per cent from 33,257.90 points to close at 33,621.75 points last Friday, as the negative Year - to - Date performance of the market slips to a negative of 4.07 per cent.

Equally, out of the five NSE sector indices, only Insurance index appreciated by 0.77 per cent. On the other hand, the Oil/Gas and Consumer Goods indices recorded the worst performances with respective declines of 1.80 per cent and 1.29 per cent. The Banking index followed with a 0.74 per cent loss, while the Industrial index also fell 0.48 per cent.

The volume of transaction level dropped  by 20 per cent as 1.240 billion shares valued at N21.72 billion were exchanged in a higher number of deals of 18,625 compared with 1.544 billion shares valued at N17.52 billion exchanged in 17,349 deals recorded in the previous trading week.

Capital market analysts are of the view that the political atmosphere in Nigeria will become more stable and clear in the coming months and obviously headways will be achieved.

Analysts in GTI Capital Limited said, “We are optimistic about the turn of events in the coming month which should begin with key ministerial appointments to iron out pressing issues.

Analysts in Cordros Capital Limited said that cautious trading is expected to continue in the short-term as the economy and markets seek clarity on the policy intentions of the new government.