Some capital market operators have tasked the Federal Government to pursue reforms and policies that will revive investors’ confidence in the nation’s bourse in the new dispensation.
The operators spoke in Lagos while reacting to the persistent bearish trend in the Nigerian equities market.
A Professor of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun, Sheriffdeen Tella, said government should strengthen the economy through transparency in budgeting and accountability in spending to boost confidence.
Prof. 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.
The Chief Operating Officer (COO) of InvestData Ltd., Mr. Ambrose Omordion, attributed the down market trend despite earnings season to confidence crisis arising from the post-elections outcome and the electoral process.
Omordion said wealth corporate earnings as a result of stagnated economy in 2018 contributed to the market trend.
He, therefore, 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 the new cabinet.
Also, the Publicity Secretary of the Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude, attributed the downward trend in the equities market to instability and insecurity associated with the last general elections.
Igbrude said the outcome of the elections was contrary to expectations from the investing public, especially foreign investors.
He said the Federal Government should address the situation to strengthen investors’ confidence, as well as ensure economic stability.
He added that the market regulators and other stakeholders should continue to engage the investing public to embrace the market.