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2019: Buhari’s re-election declaration crashes Nigeria stock market

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As President Muhammadu Buhari announces his intention to seek re-election in 2019 on Monday, activities opened on the Nigerian Stock Exchange (NSE) with a negative trend as the market capitalisation lost N150 billion and volume depreciated by 42.82 per cent.

It will be recalled that President Buhari after several months of speculation announced that he will be re-contesting contrary to his earlier claim that he was prepared to rule for a term.

This is as many Nigerians have continuously expressed doubt over the ill health of President Buhari, who on Monday travelled to London suspectedly to meet his medical team.

The market capitalisation, which opened at N14.753 trillion, shed N150 billion or 1.02 per cent to close at N14.603 trillion, amid three-month losses by blue chips.

Also, the All-Share Index dipped by 411.98 points or 1.01 per cent to close at 40,429.18 compared with 40,841.14 posted on Friday, April 6.

The market was weighed down by profit taking by some investors with major blue chips recording price losses.

Unilever recorded the highest loss to lead the losers’ table, shedding N4.80 to close at N55 per share.

Lafarge Africa trailed with a loss of N3.20 to close at N41 in spite of N1.50 final dividend declared for the financial year ended Dec. 31, 2017.

Dangote Cement shed N2.90 to close at N252, while Guinness depreciated by N1 to close at N103.

Dangote Flour also lost 65k to close at N13.15 per share.

On the other hand, GlaxosmithKline led the gainers’ table during the day, growing by N10 to close at N30 per share.

Specifically, the Lafarge Africa Plc declared a turnover of N299.2 billion on a loss, after tax of N34 billion for the financial year ended Dec. 31, 2017.

The company’s audited result released by the Nigerian Stock Exchange (NSE) showed that loss before tax stood at N34 billion as against N22.8 billion posted in 2016.

The company recorded a loss after tax of N34.6 compared to a profit after tax of N16.9 billion declared in the corresponding period of 2016.

Its gross profit stood at N50.8 billion in contrast with N40.7 billion in the previous year.

Cost of goods rose to N248.4 billion as against N179.1 billion in the comparative period of 2016.

Notwithstanding, the company declared a final dividend of N1.50 per share which translates to a dividend yield of 3.4 per cent based on the last closing price.

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