According to Investment analysts, a combination of macroeconmic and political factors have forced the Nigerian stock market into massive slide as the market suffered its worst week losses since after the inauguration of the President Muhammadu Buhari’s government in May. Investors lost N271.7bn last week as market capitalization of the Nigerian Stock Exchange (NSE) reduced to N10.8trillion.
Analysts expressed that the sharp decline in the market performance and the attendant huge losses to investors were due to the overwhelming influence of the difficult macroeconomic environment which dampened investors’ sentiments.
‘’There has been a general weakness in investors’ sentiments arising from the general macroeconomic conditions that have worsened the profitability of quoted companies at the stock exchange’’, Afrinvest Group, a Lagos-based investment banking group, said last weekend.
They had linked the weak sentiment to lack of clear economic policy direction almost two months into the new government. Investors’ sentiments were also said to be dampened with the announcement that ministerial list would not be ready until September, a development which confirmed the earlier position of Renaissance Capital, a world leader in international finance, that 2015 would be a lost year for the Nigerian economy.
Many investment advisers are of the view that risk in an operating environment is better than uncertainty, describing the current operating environment in Nigeria as dangerously uncertain and unpredictable.
No comments:
Post a Comment