Last week, Nigeria’s stock market took a big step back as rising security worries and market profit-taking greatly affected the mood. This eliminated almost N5 trillion in value for investors.
The News Chronicle reports that the Nigerian Exchange lost N4.915 trillion in market capitalization over five trading sessions as its market value fell from N160.51 trillion on May 29 to N155.59 trillion by June 5. The All Share Index also dropped by 3.2 percent, underscoring how worried investors are.
Although certain experts said the downturn was caused by profit-taking following a protracted run, market players cautioned that deteriorating security could erode investor confidence and impede the pace of ongoing economic change.
Shareholders and investment groups pushed the Federal Government to step up measures to safeguard lives, companies, and assets across the board. They said that unchecked security issues, particularly as political activities gain momentum, could turn off both domestic and international investors.
To counter security concerns, industry leaders also urged greater intelligence collection, community policing, youth empowerment programs, and the use of current surveillance technology.
Improving security remains absolutely necessary to sustain economic development, attract investment, and protect the gains made in Nigeria’s capital market over the last few years, according to market watchers.
