Operators Task SEC, NSE On Market Downturn | Independent Newspapers Limited
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Business, Money Market

Operators Task SEC, NSE On Market Downturn

Posted: Mar 22, 2016 at 3:00 am   /   by   /   comments (0)

Some capital market operators on Monday suggested that the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) should hold a stakeholders’ summit to address market downturn.

They told newsmen in Lagos that there should be synergy among operators and regulators in the interest of the capital market.

According to the operators, SEC and NSE market regulators need to do a holistic study of the market to address the challenges affecting its growth and development.

A former president, Chartered Institute of Bankers of Nigeria (CIBN), Mr Okechukwu Unegbu, said that there was need for a paradigm shift on ways to address the developments at the nation’s bourse.

According to Unegbu, this is because impressive 2015 company results have failed to impact on the capital market.

He said that SEC and NSE needed to consult widely with all stakeholders on how to bring domestic investors back to the market.

Unegbu said that the exit of foreign investors due to government’s stance on devaluation, had taken toll on the market.

The Chief Operating Officer, InvestData Consulting Ltd., Lagos, Mr Ambrose Omordion, said that the market was passing through a critical period.

Omordion attributed the development to rising inflation rate, soaring foreign exchange rate, high interest rate, increasing unemployment rate, weak production capacity and high cost of living.

He said that the seeming downward trend at the peak of an earning season was due to lack of liquidity and dwindling investors’ confidence.

Omordion said that the continuous exit of foreign investors contributed to the development.

A turnover of 11.91 billion shares worth N18.34 billion was exchanged by investors in 19,508 deals last week.

This is against 1.11 billion shares valued at N7.45 billion traded in 15,562 deals in the previous week.

The financial services sector led the week’s activity chart with 11.69 billion shares worth N14.73 billion traded in 13,094 deals.

It was followed by the conglomerates industry with 71.89 million shares worth N175.60 million transacted in 777 deals.

The third place was occupied by the consumer goods by a turnover of 69.72 million shares valued at N1.18 billion achieved in 3,019 deals.

Meanwhile, the NSE All-Share Index during the period under review lost 293.61 points or 1.13 percent to close at 25,694.79 as against 25,988.40 achieved in the previous week.

Also, the market capitalisation, which opened at N8.94 trillion lost N101 billion or 1.13 percent to close at N8.84 trillion.

Oando topped the losers’ chart in percentage terms by 25.33 percent or N1.35 to close at N4 per share.

It was trailed by Ecobank Transnational by 20.28 percent or N3.65 to close at N14.35 while Access Bank shed 10.63 percent or 47k to close at N3.95 per share.

On the other hand, Conoil led the gainers’ table in percentage terms, by 21.38 percent or N3.54 to close at N20.10 per share.

UBA followed by 9.59 percent or 33k to close at N3.77 while Law Union & Rock Insurance appreciated by 9.38 percent or 6k to close at N6.70 per share.