Consequently, foreign investors that play a dominant role in the market resorted to a massive sell-off of shares. “Theories of investors’ behavior have revealed that bad news triggers market panic and investors over-react to such news. The Managing Director of Crane Securities Limited, Mike Ezeh, said a lot of foreign investors had dumped their shares owing to the fear of election consequences. The planned election has affected the market adversely, resulting in panic buying and panic selling particularly on the part of foreign investors,” he said. But what really made foreign investors to exit Nigeria was the massive defection, the same situation that affected the market in 2014 is repeating itself.

Source: The Guardian February 04, 2019 04:30 UTC