The Nigerian All Share Index took a turn for the worse as stocks got pummeled throughout today’s session. The index went south straight out of the blocks as investors went from profit taking to desperation on the back of an uncomfortable silence from the new government.
The index lost a whopping 1.19% the worst loss since April 8 by our records. The scary part is that this could just be a remake of the bloody February when the market lost for 7 straight days and in mid March when the index took a two day plunge of 2.5% and 1.2% respectively. The danger here is that we have lost over 2% this week alone and could just be the start of another poor run. A total of 19 stocks gained today whilst 40 lost (see top ten gainers and losers below).
This perhaps is the clearest message yet that the capital market will not keep mum whilst the government takes forever to tell us how they intend to achieve their grand plan for the economy. Four straight days without a word on what the government plans to do is not something the market takes kindly.
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As some contrarian investors will see it, this is perhaps a clear sign of wealth exchange. When this happens, opportunist seize on the opportunity to pile into stocks. With Zenith, GTB and some other banks now trading at their one month lows, this could just be an opportunity to pile in.