Analysts have attributed the recent increase in investment recorded on the floor of the Nigerian Stock Exchange to a lot of reasons, especially on the portfolio investors’ cash trapped in the country.
The MD/CEO, Capital Square Limited and the Acting Chairman Financial Group, Lagos Chambers Of Commerce and Industry (LCCI), Obinna Anyanwu, explained that at the beginning of the pandemic, most portfolio investors had sold off their shares only to re-invest the funds when they could not repatriate the remaining liquidated investments.
Anyanwu said, “Before the lockdown, while the world was getting into COVID-19 crisis, the country experienced scarcity foreign exchange, and exchange rate began to go up as the naira was taking a heat from all the other major currencies.
But as that happened, the CBN reacted by subtly devaluation, but they were not clear about it, and this made the Dollar to go up from N360 to N380, which created some level of uncertainty in the market, and a couple of these funds had to exit.
Source:
Charles okonji
