Some capital market operators on Monday said that policies aimed at increasing the participation of local investors should be the priority of the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).
The operators told the News Agency of Nigeria (NAN) in interviews Lagos that SEC and NSE should pursue friendly policies that would boost local investors’ confidence, in view of the deteriorating low patronage of stocks.
Okechukwu Unegbu, former President, the Chartered Institute of Bankers of Nigeria (CIBN), said that market regulators should pursue friendly policies and strategies that would reinvigorate local investors’ confidence back to the market.
Unegbu said that the failure of SEC and NSE to develop local investors made them shun the Nigerian capital market.
He said that emphasis by SEC and NSE on foreign investors, to the detriment of local investors, led to their low patronage in the equities market.
Unegbu, who is also the CEO, Maxifund Investments Ltd, said that the market regulators had not done much to ensure development of local investors, for increased participation.
According to him, market regulators should stop borrowing foreign policies that will have negative impact on the market.
He said that foreign investors were panic sellers that could exit the market at any slight economic challenge.
Unegbu stated that foreign investors were prone to currency fluctuation and price volatility and can exit at any given time, unlike local investors.
Malam Garba Kurfi, the managing director, APT Securities and Funds Ltd, said that SEC and NSE should continue to develop the market to enhance the participation of retail investors.
Kurfi said that more companies should be encouraged to list on the exchange, to deepen the market and create activities.
He noted that foreign investors would not development our market for us because they could exit at any given time.
NAN reports that a turnover of 2.85 billion shares worth N7.42 billion were traded by investors in 16,065 deals last week, as against a total of 873.84 million shares valued at N8.02 billion exchanged in 15,944 deals in the previous week.
The Financial Services Industry led the activity chart with 2.63 billion shares worth N4.94 billion, traded in 10,882 deals.
The ICT Industry followed with 105.40 million shares valued at N52.70 million, transacted in 11 deals.
The third place was occupied by the Conglomerates Industry with a turnover of 36.495 million shares worth N44.162 million, in 446 deals.
NAN reports that the NSE All-Share Index lost 810.72 points or 3.00 percent to close at 26,170.88, against 26,981.60 posted in the previous week.
Also, the market capitalisation, which opened at N9.288, trillion shed N279 billion or 3.0 percent, to close at N9.009 trillion.
Airline Services and Logistics led the gainers’ table in percentage terms for the week, gaining 19.69 percent or 50k, to close at N3.04 per share.
Wema Bank followed with a gain of 10.53 percent or 6k, to close at 63k, while Livestock Feeds increased by 9.59 percent or 7k, to close at 80k per share.
Conversely, Cement Company of Northern Nigeria topped the losers’ chart in percentage terms, dropping by 14.34 or 75k, to close at N4.43 per share.
National Aviation Handling Company trailed with a loss of 14.18 percent or 38k, to close at N2.30, while Cadbury dropped by 14.13 percent or N1.83, to close at N11.12 per share. (NAN)
