Stock market investors groan over persistent fall in equities
…Indices slide by N2,095 trillion in 11months
…Urge govt to articulate policies to stir economic activities
Investors’ in the nation’s capital market have bemoaned the perpetual lull and free fall of share prices in the stock market, stating that some regulatory oversights, as well as government inability to articulate a policy blueprint that would stimulate economic activities is seriously taking its toll in the stock market.
Indeed, the expectations that the recent formation of ministers, even the reduction in the Monetary Policy Rate (MPR) would spur market activities and reverse the downward trend turned to a mirage, as the market continued on a downturn despite the developments.
Specifically, the market capitalization of listed equities depreciated by N2,095 trillion or 22.2 per cent, from N11,510trillion recorded at the beginning of the year in January to N9,415 trillion at close of business in November 30 while the All-share index slides by 6333.76 points or 23.1 per cent from 33,719.45 to 27,385.69.
The President, Independent Shareholders Association of Nigeria, Sir Sunny Nwosu described the current state of the market as an unfortunate one.
He attributed the situation to over dependence on foreign investors while the local ones that are affected during the recession were being neglected.
“The market has lost about N2 trillion this year and it is losing this amount when there was expectations that in the next two year, market capitalisation will hit N1 trillion.
“Despite the economic meltdown that hit the local investors, they are not being encouraged to increase their participation in the market, instead, they depend on foreign investors that when there is problem, they will offload their portfolio and that is why the market continue to slide.
“Foreign investors are favored more than Nigerians and they are not doing enough to educate local investors. A lot of Nigerians has burnt their fingers and they should mount campaign to tell people that the capital market is not a capitalist one but a platform for long-term investment. They have a lot to do in furthering the education of Nigerians in terms of capital market investment.” He said.
The National President, Constance Shareholders Association of Nigeria, Shehu Mallam Mikail who bemoaned the current state of the market, explained that the major factor responsible for the persistent lull in the market was governments’ inability to come up with a clear blue print that would serve as a guide to both existing and prospective investors.