Investors seek govt’s intervention over free fall of equities on NSE


Indices plunge further by N1.1tr in seven days


For the umpteenth time, stock market investors have urged the Federal Government to make pronouncements that would stir economic activities and trigger actions in the market.

The shareholders, who lamented free fall of equities prices, argued that since the period of economic meltdown that hit the local investors, the market has not recorded any significant level of improvement, rather, retail investors have continued to lose their investment in equities.

Indeed, at the end of 2015 equities transactions, investors’ wealth depreciated by close to N2 trillion in equities. Also, the market capitalisation, the market capitalization of the NSE, which opened the year at N9,757 trillion on Monday, January 1, 2016, dropped to N8,633 trillion as at yesterday, representing a decrease of N1,124 trillion while the All-share index slides by 13 per cent from 28,370.32 to 25.103.05.uptee

Specifically, 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 goverment’s inability to come up with a clear blue print that would serve as a guide to both existing and prospective investors.

He argued that without a clear policy from government stating the direction of the economy for the next four years, all efforts by the regulators to stimulate activities and boost investors’ confidence in the market would remain a mirage.

“Most of the investors are wary, they do not know the way forward. They are even saying the budget is missing, have you ever seen where the budget is missing. Both local and foreign investors are watching to see what will happen.

“There are no buyers for even those that wanted to sell off their shares. Economic system is not clear yet and this would continue until the government unfold the true picture of what they have on ground.”

The President, Renaissance Shareholders Association of Nigeria, Timothy Olufemi affirmed that the market has not made any significant improvement this year.

He attributed the reason to failure on the part of government to initiate policies that would spur economic activities.

“Government is the mover of the economy. Federal government is yet to take active steps on the economy to make it liquid. For the capital market to gain and become bullish, there must be positive economy activities. The market since May 2015 has not made any significant improvement because federal government has failed to act, while economic activities is still zero.

“Lack of liquidity, no money in the economy and there is no money for savings. No economic activities to even bring foreign investors.

“Federal government should come out and stimulate the economy to stir market activities and put liquidity into the economy so that people can have extra income.” he said

Yesterday, 34 highly capitalised stocks depreciated in price, while three less capitalized ones constituted the gainers chart.
Specifically, Okomuoil led the losers chart with 9.71 per cent to close at N32.64 per share while Zenith bank followed with 9.52 per cent to close at N10.93 per share.

Ikeja Hotel lost 9.48 per cent to close at N2.96 per share. United Bank for Africa lost 6.06 per cent to close at N2.79 per share.
Nestle, GlaxoSmithKline, Continental Reinsurance, Dangote Cement and Access bank dropped 5.00 per cent to close at N779.00, N28.50, N0.95,N145.45 and N4.37 per share respectively.

Other losers of yesterday’s transactions include; Guaranty Trust Bank, UACN and Livestock, shedding 4.99,4.96 and 4.92 per cent to close at N16.39, N18.59 and N1.16 per share.
Oando also lost 4.92 per cent to close at N4.64 per share.

On the other hand, Ashaka cement topped the gainers chart with 9.32 per cent to close at N26.50 per share. Custodian&Allied followed with 3.45 per cent to close at N4.20 per share. NEM also added 3.08 per cent to close at N0.67 per share.
Investors exchanged 369.2 million shares worth N1.7 billion in 2,887 deals.