The Nigerian Stock Exchange (NSE) has recorded a loss of N281 billion since the reelection of president Muhammadu Buhari.
The banking sector is the top loser, recording its biggest fall since 2016.
This development has made the 10 largest banking stocks dropped by 4.6% at the close of trading on Thursday.
Bloomberg reports that the market’s biggest laggers by index points were Guaranty Trust Bank Plc, which dropped 6.9%, Zenith Bank Plc, which fell 4% and Nigerian Breweries Plc, down 4.5%.
This has led to reactions from analysts.
Olabisi Ayodeji, an analyst at Exotix Capital, said: “We are seeing investors react negatively in the short term” to the election results.”
To Ambrose Omordion, a market analyst, this is due to investors’ disappointment over the outcome of the elections.
While noting that smart investors that took a position earlier in the market ahead of the presidential election and earnings seasons were disappointed, Omordion said that apart from the outcome of the poll, everything was against the stock market ranging from delayed budget, expiration of the tenure of Central Bank of Nigeria (CBN) governor by June.
“The only factor for the stock market now is this earnings season, because nothing will happen between now and May 29,” Omordion added.
Unless there was a change in economic policies and reforms by the president, he further pointed out that the trend might likely continue.