Political tension costs stock investors N2.8trn in 6 months

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Investors at the Nigerian stock market have lost values worth more than N2.8 trillion to political and economic uncertainties in the last 6 months, National Daily has gathered.

This is against expectations by some analysts that the positive trend witnessed in the capital market in 2017, would spur market activities in 2018.

The loss, in a six-month period, derived from the difference between N15.549 trillion market capitalization recorded at the end of transactions in February 28, 2018 and market capitalization, at the close of transactions, as at the end of August, at N12.722 trillion

This is N2.827 trillion or 22 per cent loss.

Also, the All-Share Index (ASI) declined by 8,482.09 points or 24 per cent to 34,848.45 points from 43,330.54 points achieved as at February 28, 2018.

Investors, who are currently counting loses, urged politicians to desist from unguarded utterances capable of heating up the polity and impacting negatively on the stock market.

Specifically, the Association of Stockbroking Houses of Nigeria (ASHON), in a letter signed by the General Secretary, Sam Onuokwe, stated categorically that the political tension and uncertainties witnessed in the country is currently affecting investors’ sentiments, asset valuations, and portfolio allocation.

According to the group, foreign portfolio investors and their indigenous counterparts have embarked on massive share sell off and other financial instruments, despite improved performances of many listed securities.

The group urged the political class to moderate their activities and utterances by acting in such a manner that will boost investors’ confidence and grow the economy.