At the close of trading on Wednesday, 20/10/2020, the NSE market capitalization shed N113 billion from N14.983 trillion to N14.870 trillion.
According to analysts, demand for equities drastically reduced on the trading floor of the NSE, as the market reacted to the prevailing tensed security situation arising from the hijacked #EndSARS protests in Lagos, resulting in the loss of lives and vandalisation of private and public owned properties.
They posit that the lull in the market, was not unconnected with the disposition of most investors, who rather than investing, showed more concern about the safety of their investments, as well as observing the government’s next line of action in handling the lingering security situation.
The NSE All-Share Index also declined by 0.75% from 28,665.82 points to 28,449.49 points.
According to the Director-General of NECA, Mr. Timothy Olawale, “Protest is legal and a fundamentally guaranteed right of Nigerians to draw government’s attention to the need to take drastic action as regards reforms in all areas of our national life. However, it is important that the economy should not be brought to its knees in the process.”
He said the economy was in tatters, and was facing the threat of a second recession and unemployment rising to an unmanageable level, adding, “the need to stop the slide is not only urgent, but important. A consequential effect of the hindered capacity of businesses to function is the higher unemployment rate, further reduction in disposable income of those left in employment, heightened insecurity with the risk of hoodlums hijacking the peaceful protest among others.”