Election Postponement Drags Stock Market All-Share Index Down By 1.6%

The Nigerian Stock Exchange (NSE) has reacted negatively to sudden election postponement, dropping by N196 billion as predicted by financial experts.

Naija News understands that this triggered sell pressure on the Nigerian Stock Exchange (NSE), forced it to close 1.61 percent lower in the first trading day of the week.

Investors had hoped to start getting a clear picture of who will likely be the President of Nigeria by the time market reopens on Monday, but that expectation was dashed by the Independent National Electoral Commission (INEC), which shifted the polls in the early hours of Saturday.

Also, the All-Share Index which opened at 32,715.50 lost 525.43 points or 1.61 percent to close at 32,190.07, amid loses by blue chips.

Naija News, however, learnt that the equity market which climbed past a three-month high on Feb. 15 reversed growth, following last-minute postponement of the general elections.

Mr Sola Oni, a chartered stockbroker and Chief Executive Officer, Sofunix Investment and Communications, Lagos, said: “The sudden postponement, few hours to election period, was a sad commentary.

“It has deepened Nigeria’s political risk with dire consequences on investment decision,” Oni said.

He said that the shock caused by the announcement might jolt foreign portfolio investors who had been apprehensive of the presidential election.

“It is not unlikely that trading on the stock may be moderated by this development as it is capable of further eroding investor confidence in our market.“Every political decision has a direct or indirect impact on the financial market,“he stated.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd, had earlier told NAN that the postponement, few minutes to the Election Day would further slow down economic activities.

According to the expert, it will also cause cautious trading in the nation’s bourse.

Omordion said that investors’ confidence in the recent stock market rebound would be dampened with the development. He said that the development had heightened uncertainty in the market arena and economy.

Omordion said that investors who had started to pick up shares to position for a post-election rally were now dumping their shares due to INEC’s sudden decision to shift the polls.