The Nigerian stock market closed flat on Tuesday, after more than a week the nation concluded its Presidential election and three days before the gubernatorial and States Assembly polls.
The Nigeria Exchange broad gauge, the All-Share Index, closed with a zero change, neither gaining nor rising, according to trading results released by the bourse at the end of trading in Lagos.
The index closed at 55,603.94, points versus a close of 55, 605.57 points on Monday. Ten stocks, including Dangote Cement (gained 0.72 percent), FCMB (3.5 percent), and OANDO (2.8 percent), their impact was neutralized by the weight of 10 others that lost, including MRS (lost by the daily maximum limit of 10 percent), NCR (9.9 percent), and Honeywell Flour (6.4 percent), among others.
Tuesday’s flat close reflects investors’ efforts to understand the possible direction of the market in the context of Nigeria’s political climate, an analyst, Abiola Rasaq, has said.
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“In my view, today’s flat close of the All-Share Index only signals an interim equilibrium for the market, as bargain hunting by some investors matches profit-taking activities from traders selling into modest strength of the market, especially as long-only investors with relatively long-term horizon take a cautious stance on the market pending clarity on reform expectations from the incoming government in the months ahead,” Rasaq told Daily Trust.
He recalled that Nigerian equities have booked “a commendable 8.5% bull-run year-to-date, despite concerns on macro and political risks,” describing it as an outperformance to emerging market peers and the world equity index.
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