The Nigerian Stock market on Tuesday after a bearish Monday largely attributed to the announcement by President Buhari that he will contest a reelection. The stock market All-Share Index fell by lost 1% on Monday as investors dumped about 30 stocks to the losers list.
However, the market bounced back on Tuesday gaining 0.17% with the help of heavyweights likes of Mobil, International Breweries, Dangote Cement, Lafarge, Okomu Oil and Dangote Sugar driving market capitalization with considerable gains. They were 16 and 26 losers respectively on Tuesday.
Nigerian stocks have gained just twice out of six trading sessions on this month after losing 12 times in March, the bloodiest this year so far.
World Markets Spooked
Foreign markets around the world were also spooked following the threat of a trade war between the United States and China, two of the world’s largest economies. Stock markets in the United States and Europe all reported massive losses. However, a more conciliatory tone from the Chinese President Xi Jinping brought back some confidence in the market, as the losses were largely pared down. Most markets posted large gains on the back of his remarks.
The Nigerian Economy also got its own fair share of good news after the CBN Governor reported that Nigeria’s external reserve had hit $47 billion and is on track to hit $50 billion. The exchange rate and the price of crude are two of the most important indicators that typically drive positive or negative sentiments in the stock market.
Monday’s announcement that Buhari was going to contest sent shivers down some spine of some investors as some indicated to Nairametrics that they had sold off their holdings. They point to a potential rift within the ruling party and a possible return of the Niger Delta militants as a possible threat to investments.