Nigerian stocks drop to 3-month low after Buhari announced second term ambition

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The Nigerian Stock Exchange, NSE, has recorded a negative trend on the day President Muhammadu Buhari announced that he would seek re-election as the market capitalisation lost N150 billion and volume depreciated by over 42 per cent.

The President had declared his intention to run at the National Executive Committee meeting of the All Progressives Congress, APC, in Abuja on Monday, disclosing that he was heeding the call by Nigerians for him to do so.

The declaration puts paid to speculations over his intention after the president suffered ill health in 2017. There is no evidence the declaration was directly related to the stock market’s negative trend.

The market fell on Monday mainly as a result of price depreciation recorded by stocks in the banking, industrial goods and consumer goods sectors, which investors offloaded from their portfolios.

At the stock exchange, the market capitalisation, which opened at N14.753 trillion, shed N150 billion. The All-Share Index, ASI, went down by 411.96 points to settle at 40,429.18 points compared with 40,841.14 posted on Friday, while the market capitalisation reduced by N149.7 billion to close at N14.604 trillion.

Lafarge Africa Plc released its 2017 earnings, which fell short of what investors were expecting, especially with a N35 billion loss the cement maker declared.

In addition, investors were not happy with the cash dividend of N1.50k proposed by the board of Lafarge and they consequently punished the stock by offloading it.

At the end of the day, the market recorded 31 price losers and 17 price gainers, leaving the market breadth to close negative.

Unilever was the biggest price loser at the stock market today, going down by N4.80k to settle at N55 per share.

It was followed by Lafarge, which lost N3.20k of its share value to finish at N41 per share, and Dangote Cement, which fell by N2.90k to close at N252 per share.

Guinness Nigeria went down by N1 to end at N103 per share, while Dangote Flour decreased by           65k to settle at N13.15k per share.

On the flip side, GlaxoSmithKline emerged the biggest price gainer, going up by N1 to close at N30 per share.

It was trailed by CCNN, which appreciated by 20k to settle at N18 per share, and Champion Breweries, which also improved by 20k to close at N2.48k per share.

Axa Mansard grew by 12k to end at N2.52k per share, while Fidson also increased by 12k to settle at N5.80k per share.

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