Elections: Investors Cautious as Stock Market Crosses N30trn Market Capitalisation – THISDAYLIVE

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Elections: Investors Cautious as Stock Market Crosses N30trn Market Capitalisation •Bonds rise as Tinubu leads in pivotal election tally Kayode Tokede Amid the tension associated with the 2023 general elections, the stock mark

Amid the tension associated with the 2023 general elections, the stock market of the Nigerian Exchange Limited yesterday crossed the N30 trillion mark in terms of market capitalisation, setting a new record as domestic investors shunned high risk stocks and focused more on investment in fundamental stocks.

Foreign participation in the local bourse has so far moderated in recent years, due to issues around foreign exchange liquidity and monetary policy of the Central Bank of Nigeria over rising inflation rate. The positive domestic investor sentiment, according to analysts was driven mostly by strong earnings released and dividend pay outs announced by companies in the wake of earnings season.

In addition, Nigerian Breweries also recommended to shareholders a total dividend of N13.87 billion, that is, N1.43 kobo per ordinary share of 50 kobo each. Speaking on the outlook of the stock market in 2023, the Managing Director/Chief Economist at Analysts Data Service and Resources Limited, Dr Afolabi Olowookere, disclosed that while recent evidence suggested the market performance during pre and post elections comes out negative, it is expected that the stock market might close in the negative territory at the end of the year.

 

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