Dipo Olowookere
By Dipo Olowookere
**As Market Recorded 15 Gains, 8 Losses During Period
When on Sunday, March 29, 2020, President Muhammadu Buhari announced in a nationwide broadcast that activities and offices in Abuja, Lagos and Ogun State would be totally shut down from the next day except for those rendering essential services, many thought the stock market would be badly affected.
The outcome of the Nigerian Stock Exchange (NSE) on Monday, March 30, 2020, confirmed the fears of many about this as on the first day of the lockdown, the market went down by 2.43 percent.
Though the trading floor of the bourse remained closed, the management of the exchange activated its business continuity plan to allow stockbrokers and investors trade remotely using electronic devices.
The next day, the market fell by 0.14 percent and prices were trading low, and the next day, which was April Fool’s Day, another loss was recorded, this time, by 0.94 percent.
When the next day the market appreciated by 0.10 percent, some analysts said it would be short-lived and they guessed right because at the next trading session, the market returned to its familiar territory, losing 0.13 percent on the last trading session of that week.
When activities resumed the next Monday, investors were greeted with a 2.02 percent loss and for some traders, they quickly positioned themselves by buying equities at cheap prices with the hopes of selling high when things normalise probably after the lockdown or when vaccine for the COVID-19, which caused the initial stay-at-home order, is found by scientists.
But Business Post observed that for the next seven consecutive sessions, the market was acting like it was on steroids, closing in the green territory until it was halted on April 20 and 21, 2020.
On April 22, it closed bullish, but slipped the next day by 1.36 percent, before staging a comeback from April 23 till the last day of the lockdown on May 4, 2020.
Many have wondered why the stock market remained bullish despite the economy struggling for life as a result of the coronavirus pandemic.
Few days ago, Business Post attributed the sudden rise in the market to foreign portfolio investors choosing to reinvest their funds in the local market when they could not take away their trapped Dollars out of the country because of the stoppage of forex sales to dealers at the Investors and Exporters segment of the market.
From Business Post’s analysis, there were a total of 23 trading sessions from when the lockdown became effective in Nigeria till it was lifted by President Buhari.
It was observed that of the 23 trading days, the market recorded 18 gains and eight losses. Putting this into percentage, bulls dominated by 76 percent, while the bears managed only 24 percent.
During the 23 trading days, the All-Share Index (ASI) appreciated by 1,759.07 points to 23,089.86 points from 21,330.79 points, while the market capitalisation increased by N916 billion to N12.033 trillion from N11.117 trillion.
Since the movement cessation was eased, the market has remained bullish, closing higher at the close of transactions on Thursday.
However, as at the time of filing this report, the market was down by 1.20 percent.
