Stock market volatility: Operators task FG on positive reforms
Stock market volatility: Operators task FG on positive reforms Some capital market operators on Thursday tasked the Federal Government to pursue reforms and policies that would revive investor confidence in the nation’s bourse in the new dispensation. They spoke with newsmen in Lagos while reacting to the persistent bearish trend in the Nigerian equities market. […]
Stock market volatility: Operators task FG on positive reforms
Some capital market operators on Thursday tasked the Federal Government to pursue reforms and policies that would revive investor confidence in the nation’s bourse in the new dispensation.
They spoke with newsmen in Lagos while reacting to the persistent bearish trend in the Nigerian equities market.
Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun, said government should strengthen the economy through transparency in budgeting and accountability in spending, to boost confidence.
Tella said there was the need for a long-term national plan to enable investors to key in and participate on long-term basis in the economy.
He noted that the continuous negative trend in the capital market was due to loss of confidence in the economy, apart from slowdown in the global economy.
“There is no concrete evidence of economic diversification, particularly with respect to industrialisation.
“All these weaken the economy that scares portfolio investors who are the major participants in the capital market,” Tella said.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd, attributed the down market in spite of earnings season to confidence crisis arising from the post-election outcome and electoral process.
Omordion said that wealth corporate earnings as a result of stagnated economy in 2018 contributed to the market trend.
He called on President Muhammadu Buhari to roll out economic policies that would kick start activities in the economy.
Omordion stressed the need for prompt appointment of ministers made up of sound and competent technocrats in his new cabinet.
Also, Moses Igbrude, Publicity Secretary, Independent Shareholders Association of Nigeria (ISAN), attributed the downward trend in the equities market to instability and insecurity associated with the last general elections.
Igbrude said that the outcome of the elections was contrary to expectations from investing public, especially foreign investors.
He said that the Federal Government should address the situation to strengthen investors’ confidence as well as ensure economic stability.
He said that the market regulators and other stakeholders should continue to engage the investing public to embrace the market.
Source: NAN
Photo Credit: Google
