[dailymotion code=”k1ygda8mykMfaFxGtmb” autoplay=”yes”]
Russia’s invasion of Ukraine is capable of creating uncertainty in the Nigerian stock market and dampening investors’ appetite, analysts have said.
Speaking in a telephone interview, a professor of the capital market, Nasarawa State University, Uche Uwaleke, said aside from uncertainties, the conflict would negatively impact capital importation and reduce foreign investors’ patronage.
He said although the market closed upbeat at the end of trading on Thursday and Friday, he argued that investors are conscious of uncertainty that the tension could generate and would adopt the ‘wait and see’ strategy.
“The scale of the involvement in the war is huge, it will create global market shock, which is already, happening and this would affect the nation’s stock market. Already people are beginning to say that this could lead to third world war,” he said.
A professor of economics at Olabisi Onabanjo University, Sheriffdeen Tella, said the war may not affect the market directly. He said as it affects the international capital markets, there will be negative effects on Nigeria.
Global stocks came under intense selling pressure last week, as investors were spooked by the escalation of the tensions arising from the conflict.
However, investors’ worries eased late in the week following the West’s decision not to exclude Russia from the international interbank payments system.
