Thursday, February 12, 2015/ 7.20am / The Nigerian Investor, firstname.lastname@example.org
Stock market performance in an election period is an highly unpredictable outcome as uncertainties surrounding electioneering and where it will eventually end continues to put market stakeholders both locally and internationally on a surveillance mood.
The Nigeria 2015 general elections which was scheduled to hold on the 14th of February for Presidential and National Assembly elections and 28th of February for State and House of Assembly elections has now been postponed to March 28 and April 11, 2015, respectively as stated by the Independent National Electoral Commission (INEC).
Market mood after the postponement was announced remained bearish. The NSE All-Share Index dropped by -2.87% Week-to-date, while the market year to date performance dropped further to -15.96% at the close of trading on February 10, 2015. This performance has placed the Nigerian Stock Market as one of the worst performing market in the world in recent times.
In effect, Nigerian Naira also continue to fall against the US Dollars as it currently exchanges at N209 to US$1 at the parallel market as at Tuesday, while the interbank market shut down on Wednesday as the Naira was oversold at N205/$1. Meanwhile, the decline in oil price at the international market cannot be dissociated from this drop in value.
As situation unfolds, the postponement of the general elections will continue to affect market performance due to the level of uncertainties that surrounds current situation while we expect financial market regulators to take drastic steps in order to minimise the effect of the postponement most especially on the naira.
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