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Stock market index drops by 1.3% as a result of low liquidity and political concerns



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Last week, the Nigeria Stock Exchange experienced an increased in price volatility as the index dropped by 1.3 percent.

However, the reason for this is as a result of low liquidity and political concerns.

Mean while, analysts have also warned  that the ongoing volatility will continue as third quarter numbers will help investors and fund managers to rebalance their portfolios , while watching the political space and full year company earnings position, as well as post- election market dynamics

They noted that the " January effect "which was absent in 2018 , will  show up in 2019 due to low liquidity in the market .

According to them, 2019 general elections  may also  affect the market negatively.

The analyst therefore  called for the provision or reliable, factual and positive  economic or political information adding that it is plays an important role in changing the trend before the 2019 presidential election and 2018 full year earnings season .

In the same vein, the Chief Research Officer of Investdata Consulting , Ambrose Omodion , has also urged Investors to review their positions in line with their investment goals, strength of the company numbers and act as events unfold in the global and domestic environment .

 A report from transactions made last week showed that the All - Share Index decreased by 1 . 28 per cent , while market capitalisation appreciated  by 0 . 78 per cent to close the week at 30 , 638 . 90 and N11 . 426 trillion respectively .

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