Punch||Equities fell on Friday as investors continued to react negatively to the suspension of the Central Bank of Nigeria Governor, Mallam Lamido Sanusi. The market capitalisation fell by N167bn to close at N12.301tn, bringing the total decline in equities value since the announcement of Sanusi’s suspension on Thursday to N353bn or 2.80 per cent.
The market capitalisation had declined by N186bn or 1.47 per cent on Thursday to close at N12.468tn. Analysts had explained that news of the suspension at a time when the market was trying to stabilise from the effects of quantitative easing tapering by the United States and a huge sell-off in the emerging market was not well received by investors.
Also, the Nigerian Stock Exchange’s All-Share Index, which fell by 580.9 basis points on Thursday to close at 38,816.19 basis points, shed an additional 520.45 basis points or 1.34 per cent on Friday to close at 38,295.74 basis points. The total decline for both days stands at 1101.35 basis points or 2.80 per cent. The banking stocks continued to be affected the most by the sell-off sparked by the Presidency’s decision.
On Friday the NSE Banking sub-sector was down 2.25 per cent to close at 359.34 basis points, compared to a decline of 4.46 per cent, which saw it close at 367.61 basis points on Thursday. A total of 13 stocks recorded price appreciation on Friday, while 39 recorded price depreciation, compared to just nine gainers and 46 losers the previous day. While no bank stocks rose on Thursday, Sterling Bank Plc, Ecobank Transnational Incorporated Plc and Union Bank of Nigeria Plc rose on Friday, by 2.33 per cent, 2.07 per cent and 0.49 per cent, respectively.
Analysts explained that the situation may take a while to stabilise investors are bound to remain cautious until more information is obtained about the future direction, policy-wise, of the CBN. The Chief Executive Officer, Trust Yield Securities Limited, Mr. Ola Yussuf, said on Thursday, “As far as the market is concerned, there is a need to clarify the situation and for the next governor to say where he stands on policies that Sanusi was pursuing. Is he going to change the policies or is he going to pursue the same policy? We don’t know.”
![[The Nigerian Economy Daily] FG has approved the closure of five foreign missions and embassies](https://nairametrics.com/wp-content/uploads/2017/05/nigerian-economy-today-1.jpg)
