The stock market plunged sharply, wiping out over N4.6 trillion in a single trading day, a staggering drop by any measure.
In this episode of Follow the Money, Ugodre breaks down the factors behind the N4.6 trillion market slump, the growing concerns around capital gains tax, the surge in corporate fundraising, and the latest company results influencing investor behaviour.
He explains that the Nigerian All-Share Index (ASI) closed on November 7th in negative territory, shedding 501.7 points to settle at 149,524.8, its fifth consecutive day of decline,bringing the total losses for the week to N4.6 trillion.
He proposed that the loss was due to factors like the 25%-30% recent capital gains law, investors taking profit off the table due to the significant gains the market experienced in October, and the Trump threat on Nigeria concerning the killings of Christians in some parts of Nigeria.Â
Furthermore, he examined the major capital-raising efforts by several Nigerian companies in the agro-allied and internet sectors, including Presco, which sought N236.7 billion , and Ellah Lakes, which attempted an ambitious N235 billion raise for expansion.Â
The analyst also briefly covered other corporate news, such as the half-year results of Fidelity Bank and an acquisition made by Norrenberger Securities, and emphasized the need for competitive policies to attract and retain foreign investment.Â
Watch the latest episode of Follow the Money with Ugodre as he unpacks the shocking market wipeout this week and what it means for your investments.
