By NKIRUKA NNOROM
A former President of the Chartered Institute of Bankers of Nigeria, Mr Okechukwu Unegbu, has urged investors not to panic over the current bearish trend of the Nigerian Stock Exchange.
Unegbu said in Lagos that the lull was not a sign of crash of the capital market. He said that the trend result from the new increment in Cash Reserve Requirement (CRR) for public sector deposits.
The CBN in July raised the CRR on public sector deposits, including deposits from the three tiers of government, from 12 per cent to 50 per cent.
Some capital market watchers believe that the increment will spur major investors to redirect their fund from the capital to money market, where returns will be higher. Unegbu advised that investors should take advantage of low price of equities to increase their stakes.