Lagos – Mr Sehinde Adenagbe, the Managing Director, Standard Union Securities Ltd., on Monday said the signing of the 2014 budget in May would hamper infrastructure development and stock market growth.
Adenagbe in Lagos said that infrastructure projects across the country would suffer major setbacks due to the late passage of the budget.
He said that the nation’s economy and the stock market had witnessed low activities due to lack of investible funds.
Adenagbe, however, called on the Federal Government to ensure prompt signing of future budgets to accelerate economic growth and development.
He said that the nation’s economy would have surpassed its current growth if not for late passage of the budget, insecurity and unfriendly business environment.
According to him, government should take decisions that will impact positively on the different sectors of the economy.
He attributed the current growth in the equities market to improved first quarter results, return of foreign investors and low price of equities.
The Federal Government on May 23, finally released to the public the 2014 budget approved by the National Assembly and signed by President Goodluck Jonathan.
The budget signed by the president was N4.962 trillion out of which the allocation to the defence sector took about N968.127 billion.
Meanwhile, the Nigerian Stock Exchange All-Share Index last week grew by 813.49 basis points or 2.08 per cent to close at 39,831.83 against 39,018.34 achieved in the previous week.
Also, the market capitalisation appreciated by N300 billion or 2.34 per cent to close at N13.152 trillion in contrast with N12.852 trillion posted in the preceding week.
NAN reports that growth in the market capitalisation was due to the listing of 3.35 billion units of Caverton ordinary shares of 50k which was listed at N9.50 per share.
Ikeja Hotel led the gainers’ table for the week in percentage terms, increasing by 42.86 per cent or 27k to close at 90k per share.
Oando Plc followed with 25.08 per cent or N4.01 to close at N20, while Forte Oil improved by 19.62 per cent or N30.59 to close at N186.54 per share.
On the contrary, Beta Glass topped the losers’ table, shedding 14.18 per cent or N2.68 to close at N16.22 per share.
Neimeth International Pharmaceuticals decreased by 12.82 per cent or 0.15k to close at N1.02 per share.
A turnover of 1.87 billion shares worth N23.92 billion were traded by investors in 23,554 deals last week against 1.68 billion shares valued N20.86 billion in 24,513 deals in the previous week.
The financial services sector led the activity chart with 1.49 billion shares worth N15.52 billion traded in 12,384 deals.
The conglomerates sector followed with a turnover of 109.65 million shares worth N607.63 million in 1,230 deals.
The third place was occupied by the services industry with 81.71 million shares worth N228.74 million transacted in 857 deals. (NAN)