The postponement of last weekend’s general elections by the Independent National Electoral Commission (INEC) has unleased a series of reactions that market analysts said may affect the confidence of foreign and domestic investors in the nation’s capital market.
The Presidential and National Assembly elections slated for February 16 were shifted to February 23 by INEC on Saturday, few hours to the commencement of the polls, while governorship, state houses of assembly and Federal Capital Territory (FCT) Area Council polls, earlier fixed for March 2, were also moved to March 9 by INEC due to some challenges.
This was as foreign and domestic players played down election risk as the Nigerian equities market sustained its bullish run. Evidently, the All Share Index (ASI) returned a whopping 3.76 per cent w/w – largest weekly gain in four weeks – to close at 32,715.20 points. But with the postponement, analysts are of the opinion that bearish sentiments might return to the nation’s bourse.
Speaking to Daily Sun in a telephone chat, Chief Executive Officer, Crane Securities, Mike Eze, noted that the postponed election will indirectly shift traders’ sentiment, adding that the bullish run seen by the market in recent weeks to the build-up of the general elections, may be replaced by some profit taking activities.
“The market is information-driven and so there will be a mixed reaction on the trading floor this week as it will not be as bullish as like the previous week especially Friday. This is because Friday was the eve of the supposed election and people were expecting a positive result that will also affect the market positively but now they have shifted the election which indirectly have shifted traders’ sentiments. The bearish trading will come to the fore come Monday”, he said.