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Capital market operators list factors to sustain capital market growth

Stakeholders in the capital market on Wednesday identified discipline and infrastructure development as some of the factors that could sustain the current growth in the market.

The stakeholders said in separate interviews with the News Agency of Nigeria (NAN) that an economy driven by good governance, would enhance growth in the capital market. Mr Felix Akporhono, a player in the market, said the stockbrokers and regulators must apply discipline in their activities if the market is to continue to witness sustained growth.

“There must be discipline in the market. The companies, brokers and regulators should operate with discipline. If you say you are a regulator and any broker runs foul of the operational guidelines, the broker should be disciplined. The companies too, if they fail to comply with the listed requirements, they should be sanctioned,” he said.

Akporhono urged the regulators to ensure that the companies complied with the guideline by releasing their quarterly reports as required. “If they don’t comply, they should be sanctioned because investors need such information,” he said.

Akporhono said there was a need for the Central Bank of Nigeria (CBN) to grant credits to banks and should not be too strict with them. Mr Chibusor Eze, another investor, hinged the market’s sustained growth on good government policies and infrastructure.

“The capital market moves faster than the economy in every country. The more government put in place infrastructure and policies that can move the market, it will make it to grow faster,” he said.

He said the Nigerian market was growing because of the growth of other international markets and would be sustained. “The parameters are pointing to the fact that the market will continue to grow because the other markets have recovered.

The New York Stock Market which fell from 11,000 base points to 6,400 is now backing to 10,600. It has less than 1,000 basis points to fully recover. The same is true of the British and Chinese markets.

“The market was affected by both internal and external factors and now that the external factor is almost over, the internal factor is expected to be taken care of,” he said.

Eze said for the market growth to be sustained, institutional and high network investors should be encouraged to make a comeback to play in the market. He said that buying and selling was part of the market and that core investors would always plough back the money when they sell rather than go away with it Mr Amaechi Egbo, another market player, said that market recovery was a sign of renewed hope and confidence.

“It shows that things are beginning to look up and everybody is excited that the market is on its wheel of recovery. There is excitement on the air.” He said the only way to sustain growth in the market was for the investors to keep thinking positively.


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