Nigerian Stocks Crashes to its Lowest in 3 Years

Nigerian stocks sank to the lowest they have ever been in the last three years as foreign investors promptly made divestments in the economy amid fading hopes that President Muhammadu Buhari’s government can steer the country’s economy on the right path.

According to a report by The Nigerian Bulletin, “The Nigerian Stock Exchange All Share Index dropped 0.8 percent to 27,385.69 at close of the day in the commercial capital of Lagos, the lowest since December 2012. The gauge declined on all but three trading days in November for a monthly drop of 6.2 percent.”

For every stock that rose, there was almost always two other stocks that experienced a decline. The report maintains that Guaranty Trust Bank Plc, the nation’s biggest lender by market capitalization, dropped 2.7 percent to 20 naira ($0.10). The stock is down 21 percent this year, about the same as the overall index. That’s the biggest fall in sub-Saharan Africa after the Zimbabwe Industrial Index.”
Pabinka Yekere, an analyst at Vetiva Capital Management Ltd, while speaking on the phone to Bloomberg stressed that the government has not come up with a definitive policy for the economy and that the lack of clarity is affecting the stock market.