Stakeholders in the capital market say they plan to meet with President Muhammadu Buhari on how to stabilise the capital market through friendly policies that can boost liquidity.
Mr Emeka Madubuike, President, Association of Stockbroking Houses of Nigeria (ASHON) confirmed in an interview with the News Agency of Nigeria (NAN) Monday in Lagos that government needed to be more involved in the market for economic growth.
He added that the economy would not grow strictly only on money market.
“We cannot develop the economy strictly via the money market, it’s a mismatch. We need to develop the economy on an enduring basis,” Madubuike said.
He said that government should ensure the listing of all its privatised agencies on the Nigerian Stock Exchange (NSE) to increase market depth.
Madubuike noted that privatisation of government agencies should be done through the capital market and should not be sold to some select individuals.
The ASHON president attributed the lull at the equities market to supply pressures, occasioned by developments at the foreign exchange market and slide in crude oil prices.
He then urged investors to use the opportunity to increase their stakes in the capital market to maximise costs.
“This is the best time for people with investible funds to invest in the market to reduce their costs and people that purchased at higher prices when the market was bullish will gain when the market stabilises,” Madubuike said.
He said that the trend would not last forever because of strong market fundamentals.
Another market operator, who pleaded anonymity, said that the operators were discussing with the government on the need to finance the 2016 budget deficit through the capital market.
Meanwhile, NAN reports that a turnover of 1.20 billion shares worth N9.64 billion were traded in 13,712 deals by investors last week.
This is against the 1.41 billion shares valued N17.28 billion exchanged in 14,914 deals in the preceding week.
The Financial Services Industry led the activity chart with an exchange of 1.01 billion shares valued N6.47 billion traded in 8,313 deals.
The Consumer Goods sector followed with 54.33 million shares worth N2.11 billion exchanged in 2,365 deals.
The Conglomerates industry followed with a turnover of 45.98 million shares worth N184.21 million transacted in 518 deals.
The All-Share Index lost 257.18 points or 1.04 per cent to close at 24,432.51 as against 24,689.69 recorded the previous week.
Also, the market capitalisation, which opened at NN8.491 trillion shed N88 billion or 1.04 per cent to close at N8.403 trillion.
Unity Bank topped the losers’ chart in percentage terms, shedding 11.76 per cent or 8k to close at 60k per share.
Portland Paints and Products trailed by 10.16 per cent or 38k to close at N3.36, while Learn Africa declined by 10 per cent or 5k close at 81k per share.
On the contrary, Seplat Petroleum led the gainers’ table in percentage terms, growing by 19.98 per cent or N50.37 to close at N302.48 per share.
May & Baker followed with a gain of 17.50 per cent or 14k to close at 94k, while Glaxo SmithKline increased by 15.70 per cent or N3.28 to close at N24.17 per share. (NAN)