Nigerian stocks fall as Bola Tinubu is announced President of Nigeria

The Nigerian All Share Index fell by 0.53% at the end of trading on Wednesday March 1st as investors digested the announcement of Bola Ahmed Tinubu as Nigeria’s President Elect.

The All-Share Index closed trading at 55,508.61 points after opening trading at 55,806.26 points on the last day of trading in February. This represents a -0.53% drop day on day.

The Independent National Electoral Commission (INEC) announced in the early hours of Wednesday that the former governor of Lagos State Bola Ahmed Tinubu was declared winner of the controversial election that took place on Saturday February 25th, 2022.

Most young Nigerians had showed support for the election of Labour party candidate Peter Obi as president, but he ended third with about 6.1 million votes despite also winning 12 states same as rival Atiku Abubakar and declared winner, Bola Tinubu.

Stock Market fall

Nigerian Stock market closed a very nervy February with a 4.8% gain with stocks defying cash scarcity, fuel scarcity and an election fever to post solid gains.

However, stocks fell on the first day of trading after Bola Tinubu was announced president with only 29 tocks posting gains. However, the performance for most stocks was more flattish than losses as about 117 stocks did not gain or lose.

The lull performance is also symptomatic of the mood this year as stock volumes oscillate between 150 million and 275 million units on average daily. Included in the gainers chart are Ardova, Geregu Power and Wema Bank.

Outlook for March

Nigerian stocks is still up by 8.8% Ytd on the back of a positive performance for January and February 2023. However, investors go into the month of March with even more uncertainty as Nigerians await the conclusion of state elections on March 11th.

Investors will also have one eye on the actions of Labour Party and the PDP as they attempt to challenge the results of the presidential election in court.

The Labour Party of Nigeria announced that it will challenge INEC’s decision which announced Bola Tinubu of APC as the winner of the Presidential elections. This was disclosed by Baba Datti Ahmed, the Vice- President candidate of the Labour Party, who ran alongside Peter Obi.

© 2023 Nairametrics


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s