APC’s defection crisis dipped index of 5 sectors on NSE by 75% yesterday, to wreck the sectors again today

The mass defection of members of the All Progressives Congress, the ruling party, has indicated that political parties and politicians are not playing with the 2019 general elections towards achieving desired results. Majority of the defectors are parliamentarians at the Senate and House of Representatives.

From the ruling to the opposition party, the defection has attracted various reactions from the party chieftains. Nigerians on social media platforms are not left out in expressing positive and negative views on the incident. Some citizens believe that it is part of democracy, saying it would improve the country’s democracy ahead of 2019 general elections.

However, analysis of the share index of banking, consumer goods, insurance, industrial goods and, oil and gas on the Nigerian Stock Exchange shows that the trends of the defection, the ruling and opposition parties affected the sectors’ indexes by 75% during the 24th July trading period. Analysis further reveals that the share index of the five sectors would be reduced by 35.7% and 30.4% on July 25th and 26th respectively.

The reduction in the severity of the ongoing political uncertainties around the defection is an indication that stock market would be normalized as concerned stakeholders in governance get over it and focus on actions towards market stabilization.