NewsExpress banner Firstbank Verve banner Fidelity bank card banner Umm Sulaim's Thoughts Camano banner

NASS invasion: Political tension hits hard on stock market

By Chinwendu Obienyi on 12/08/2018

Gmail icon

Views: 833

Political anxiety has continued to spark volatility and induce sell-offs on the equity sector of the Nigerian Stock Exchange (NSE) as virtually all the major blue chips depreciated in price, causing the market capitalization to slip further by N102 billion in four consecutive trading sessions.

This can be attributed to the recent invasion of the National Assembly by operatives of the Directorate of State Services (DSS) who took over the complex, brandishing guns and wearing masks to deny federal lawmakers, journalists and staffers of the National Assembly from having access to the building.

Specifically, at the close of transactions on Thursday, the All-Share Index (ASI) shed 67.16 basis points, representing a decline of 0.19 per cent to close at 36,232.66 points, falling by 5.1 per cent so far this year, after climbing 42 per cent last year while the market capitalization lost N22 billion to close at N13.228 billion.

Accordingly, the Month-to-Date and Year-to-Date losses moderated to -2.12 and -5.26 per cent, respectively while second-quarter earnings have been mixed, with most banks posting declines in loan growth, citing a weak economy with several consumer goods companies recording lower profits.

Consequently, the Insurance (-1.24 per cent), Oil & Gas (-0.68 per cent), and Banking (-0.12 per cent) indices closed negative, following selloffs of LINKASSURE (-10.00 per cent), JAPAULOIL (-10.00 per cent), and FBNH (-4.52 per cent) shares, respectively.

On the flip side, gains in International Breweries (+1.64 per cent) shares, led to upturn in the Consumer Goods (+0.09 per cent) index, while nil return was posted in the Industrial Goods index.

Newly-listed fertilizer firm Notore Chemicals Industries Plc reported a wider loss before taxes for the nine months to June even as its shares dropped 8.8 per cent in the week after listing.

However, the total volume and value of trades rose by 65.09 and 76.85 per cent, to 188.26 million shares and N1.29 billion, respectively, traded in 2,795 deals.

Transaction in the shares of UBA topped the activity chart with 27.219 million shares valued at N260.23 million. Law Union followed with 25.000 million shares worth N22.500 million, Zenith Bank sold 19.91 million shares valued at N471.38 million while Courtville transacted 19.69 million shares worth N3.04 million.

Last week, the Senate President, Dr Bukola Saraki, Nigeria’s third most senior elected official, defected from the ruling All Progressive Congress (APC) to the main opposition, leading to the argument from market analysts and stakeholders that if the political space remains tensed, the volatility recorded so far will be heightened and as well as affect the slope of the market.

Analysts at Cordros Capital Limited said, “In the absence of a positive one-off catalyst, as well as brewing political concerns, we guide investors to trade cautiously in the short to medium term. However, stable macroeconomic fundamentals remain supportive of recovery in the long-term.”

Speaking to Sunday Sun on telephone, the Chief Executive Officer, Cowry Asset Management, Johnson Chukwu, explained that the current situation has affected the price of stocks, added that the economy might be bereft of foreign investments until after the elections.

Chukwu argued that foreign investors will not be bullish in investing in the current unstable environment, rather they will remain on the sidelines to watch the development in the political space.

On his part, Co-founder, NSSA, Alhaji Gbadebo Olatokunbo, described the political uncertainties as a temporal situation and urged investors not to panic.

According to him, “the economy is going as it should as it does not affect government policy and so there is simply no need to panic. Those who are not used to the Nigerian climate of politics will come back when they discover it was simply a masquerade dance of some politicians.”

Excerpted from a Daily Sun report


Source News Express

Posted 12/08/2018 7:21:59 PM





You may also like...
NiMET lists Nigerian cities to experience dust haze,...

N16m fraud: Pastor in trouble for recommending man...

Osinbajo storms Mambilla on peace mission

We’re working with Nigeria to end kidnappings: British...

Why Yahaya Bello missed APC Governors’ meeting with...

Late Justice Mamman Nasir an embodiment of hard...

Restructuring: Another perspective on the Igbo position, By...

Buhari to launch committee on policies

Sorting, counting of votes in progress as voting...

Doctor jumps to death from Lagos Third Mainland...

Aregbesola seeks support for government “at this critical...

Account for N2 trillion Abia money, Otti tells...


Latest News Kanu’s lawyer, Ejiofor, cries out from hiding: ‘Anambra Police Command after my life!’ •Petitions British High Commissioner Fear of state terrorism and repression now the beginning of wisdom in Nigeria — Intersociety Three convicted for fraud in Maiduguri CLO tasks Nigerians on patriotism Killer of Kogi PDP women leader confesses •Reveals why they burnt her to death Wike, Oshiomhole clash in Abuja Immigration officer arrested for supplying ammunition to bandits Three kidnappers nabbed while attempting to collect loot Ex-Governors Bafarawa, Wamakko in war of words at Sokoto airport Why presidency turned down Fowler’s request for second term 26 men dressed as women arrested at Kano birthday party Three killed as cultists clash in Lagos


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (570,723 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (456,144 views) Shameless Genevieve Nnaji exposes breasts in public (406,021 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (341,149 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (307,432 views) 10 cars more expensive than Jets (291,620 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (261,088 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (260,054 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (241,498 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (228,056 views) Lagos plane crash: Journalist releases victims’ names (203,779 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (200,201 views)


CBN milk production

CBN banner advert

UBA Wise Savers Promo


Categories Advertorials (3) African Press Organisation (81) Art & Literature (111) Business & Economy (4,617) Business Verdict (89) Columnists (1,156) Complaints & Requests (97) Enterprise & Opportunities (221) Entertainment (717) Features (855) Global Business Monitor (497) ICT Monitor (73) International (4,318) Interview (219) Live Commentary (30) Love Matters (178) Maggie's Blog (514) News (55,075) Opinion (1,437) Pidgin (18) Politics (11,869) Religion (1,132) Sports (2,252) Stock Watch (40) AMA & Al Jazeera Global Update







APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera