Ripple effects of the renewed insurgency in the North East region of Nigeria which culminated in the implementation of Sharia law in Mubi, Adamawa State today on the nation’s economy may have begun to manifest as foreign investors dumped their shares on the floor of the Nigerian Stock Exchange on Tuesday.
The Street Journal reliably gathered that the new wave of insecurity in the country has precipitated loss of confidence in the nation’s stock market.
Sources at the capital market disclosed that Nigerian index fell near a 12-months low on Today, as foreign investors sold off stocks mainly in the banking and cement sectors, dragging the naira currency lower against the US dollar..
At the end of the trading exercise on the floor of the Exchange, The all-share index shed 1.33 percent to 36,865 points, a level last seen on October 7, 2013. The naira currency shed 0.33 percent from Tuesday’s open to 166.22 intraday against the US dollar, as stocks declined.
A dealer on the floor of the Exchange who preferred to remain anonymous attributed the lackluster performance of stocks on the stock market to the increasing wave of insecurity in the country.
He told The Street Journal that investors, particularly, the foreign ones who, he claims constitute over 60 percent of the market capitalization are now jittery because of the killings and maiming of innocent people going on in the country. He regretted that from all indications, the Nigerian military appears incapacitated and obviously overwhelmed as the insurgents continue to have a field day in Adamawa.
According to the Stock dealer, annexation of a part of the country as pronounced by the Boko Haram group that began implementation of Sharia in Mubi, Adamwa State today with the amputation of ten personas’ hands by the insurgents is capable of sending out a wrong signal to the international business community that all is not well with Nigeria.
Another Stock broker who also would not want his name mentioned because of the sensitivity of the subject -matter, descried the apparent politicization of the war against insurgency in the country.
He pointed out that the worst may not have been seen yet if the tide was not nipped in the bud immediately. He said investors, both local and foreign, are heavily divesting from the nation’s market due to insecurity. He said neighboring country like Ghana as well as South Africa is gradually becoming the beneficiaries of the inclement investment environment in Nigeria.
He noted that no investor would like to invest his hard-earned money in an environment where he cannot guarantee security of his life and property. He said the Federal Government should be more decisive in tackling insecurity in the country and eschew partisan politics in its military operations
Boko Haram had earlier today imposed strict Sharia law in the north east of Nigeria carrying out public beheadings and amputations. In Mubi, the second largest city in the state of Adamawa, conquered a week ago, jihadists cut off the hands of ten people and beheaded two imams they dragged out of a mosque and accused of having prayed against their radical sect.
Extremists warned the Christians living in Mubi that they must leave the city, convert to Islam, or die. . .