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Apocalypse Wednesday on the Nigeria Stock Exchange: Here’s how market watchers reacted on Twitter

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Apocalypse Wednesday on the Nigeria Stock Exchange: Here’s how market watchers reacted on Twitter

The All Share Index of the Nigeria Stock Exchange on Wednesday dipped to its lowest level in four years, closing at 25,103.05 basis points, whereas it opened at 26,034.94 basis points. On the first trading day of this year, the All Share Index was at 28,370.32 basis points but has suffered a consistent decline.

Since the start of trading in 2016, equity investors in the capital market have lost more than N1 trillion. In fact, in a frantic sell-off on Wednesday, investors lost almost N300bn in a one hour forty five minutes time frame.

Also, today, the naira depreciated even further against the dollar, exchanging at N300 to one dollar on the parallel market, even as oil prices dropped below $30 per barrel on Tuesday.

“It’s a protest sell off against the FX restrictions,” said economist and TV host, Tunji Andrews in an email to The ScoopNG. “Let’s be real, these tinkering could scare the bravest of investors.”

“The major factor is the oil price that has weakened further,” Pabina Yinkere, an analyst at Vetiva Capital Management Ltd., told Bloomberg. “That has implications for the nation as an oil-dependent country. It has created a heightened risk environment.”

Andrews agreed that the “tanking” of crude price is also a factor in the NSE losses. He also pointed out that the federal government’s decision to try to restrict a foreign investor from repatriating its funds “after it has been agreed that they can take out 100% when they want” is also playing a part. According to him, “the rational thought on the minds of investors right now is, with crude tanking, I really cannot afford to be trapped in with the next move by the FG or the CBN, both of which now look like one and the same.”

As things degenerated on Thursday, market analysts, economists and watchers of the Nigerian stock exchange took to Twitter to raise alarm over the state of affairs. Their tweets below tell the story.

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