Information Effect of Trump’s Declaration of Jerusalem as the Capital of Israel on the Nigerian Stock Market.

Abstract

The study examined the information effect of Trump’s declaration of Jerusalem as the capital of Israel on the Nigerian stock market. The required data spanning 1st January to 31st December, 2017 were analyzed using Event study methodology. The result of the analysis showed that the news of Trump’s declaration of Jerusalem as the capital of Israel caused statistically significant negative abnormal returns in the Nigerian stock market. The study recommends that the Government and the Nigerian stock market key players should keenly monitor emerging events around the globe, as these often have implication for emerging markets through contagion.