The stock market has gone deep into the red, losing more than 2.8 trillion naira in just one day. Yes, you read that correctly; trillions wiped out in a matter of days.
In this episode of Follow the Money, Ugodre breaks down the massive 2.8 trillion-naira market loss, the ongoing concerns around capital gains tax, the wave of corporate capital raising, and the latest financial results shaping investor sentiment.
Ugodre starts off by analyzing the stock market loss of over 2.8 trillion naira in just week by stating that Nigerian All-Share Index (ASI) closed the trading day of November 7th in negative territory, shedding 501.7 points to settle at 149,524.8 points which marks the fifth consecutive day of losses, bringing the total market value erased during the week to N2.8 trillion.
He proposed that the 2.8 trillion-naira loss was due to factors like the 25%-30% recent capital gains law, investors taking profit off the table due to the significant gains the market experienced in October and Trump threat on Nigeria concerning the killings of Christians in some parts of Nigeria.
Furthermore, he examined the major capital-raising efforts by several Nigerian companies in the agro-allied and internet sectors, including Presco seeking 236.7 billion naira and Ellah Lakes attempting an ambitious 235 billion naira raise for expansion.
The analyst also briefly covered other corporate news, such as the half-year results of Fidelity Bank and an acquisition made by Norrenberger Securities and emphasized the need for competitive policies to attract and retain foreign investment.
Watch the latest episode of Follow the Money with Ugodre as he unpacks the shocking market wipeout this week and what it means for your investments.
