INVESTORS YET IN LOVE WITH BUHARI

Football may have fallen in love with President Muhammadu Buhari but unfortunately for Nigeria, investors are yet to fall in love with him in spite of his attempts at stable cleaning.
Or so the figures released by the Nigerian Stock Exchange on Foreign and Domestic  participation in equity trading in 2015 seem to indicate quite clearly.
For one, foreign inflows dried up faster since he was sworn in May. Foreign inflows between January and April 2015 crossed the N50bn mark each month with the exception of January with N48bn.
The reverse has been the case since May 2015 with the good months like June and July closing with above N40bn with joy and all else grappled came up with less almost progressively.
In August foreign inflow for equity trading dropped to N33bn then further to N29.3bn and N25.3bn respectively in September and October. It recovered to N31.9bn by November before hitting an all year low of N17bn by December.
Thus, total infow for equity trading in 2015 came to N470.8bn, 32% down on the N692.4bn recorded in 2014.
It could be argued that outflows did not quite show investors panic since 2015 outflow at N554.2bn was 34.5% lower than 2014's N846.5m but though correct, it must be garnished with exchange controls that became necessary and still remain in place.
Any how, if we separate year 2015 into two with May the month of baton change as neutral, average equity trading by all investors  between January and April was N191.3bn with April's N206.86bn leading others.
After Buhari's inauguration, the average monthly total equity trading in naira terms dropped to N142.2bn with June, July and August being the only ones above this average. The lowest was October's N106.8bn followed by December's N110.6bn.
This meant that for the whole year trading in equity in naira terms came to N1905.6bn down 28.8% on 2014's N2675.6bn.
Again, the figures indicate that foreign investors have been less active  progressively through the year. The average foreign participation up to April was N109.9bn with February as the pace setter with N133.95bn and January the drag with N99.1bn.
Now, between June and December, foreign participation value only crossed N90bn in July with every other month well below. So much so that average came to N72.3bn as total foreign participation value at N1025.1bn in 2015 represented 33.4% decline on 2014's N1538.9bn.
Don't be surprised. Buhari did say Nigeria was broke early in the day; encouraged revenue growing corporate milking, and turned out to be so slow in coming up with economic policy direction months after he was sworn in.

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