By Peter Egwuatu, with Agency Report

Some capital market operators have attributed the 1.2 per cent growth recorded last week by the Nigerian Stock Exchange (NSE) to renewed interest in the equities market.

Stockbrokers stated that market growth followed decline in yields from treasury bills and government bonds. The stockbrokers in separate interviews said that the new stance of the Central Bank of Nigeria (CBN) to tackle inflation and rising debt profile contributed to the market growth.

Arunma Oteh, SEC DG and Emmanuel Ikazoboh, NSE DG

It would be recalled that Mallam Sanusi Lamido Sanusi, the CBN Governor, on Dec. 26, 2012 warned Federal Government to stop accumulating debts for future generations. Sanusi said that the current level of debt, if unchecked, could cause hardship for future generations.

Alhaji Rasheed Yussuf, the Managing Director, Trust Yield Investment Ltd., said that investors were moving funds away from money market because of the Sanusi’s remarks on the increasing debt stock. Yussuf said that investors were also moving away from government securities to equities in anticipation of apex bank’s review of the monetary policies in 2013. He said that opportunities in the market were enormous and that institutional investors were taking positions in the market ahead of 2013.

Yussuf said that the market was closing on a positive note this December for the first time since the market crashed. Mr. Emeka Madubuike, the Managing Director of Compass Securities Ltd., said that improved results declared by quoted companies boosted investor confidence in the market. Madubuike said that both retail and institutional investors increased their participation in the market so as to be part of the success story.

Mr. Wale Idowu, a stockbroker, said that the reforms introduced into the market needed to be sustained for sustainable growth. He said that there was the need for more investor education to increase local participation.

It will be  recalled that the All Share index of the Nigerian Stock Exchange rose last week by 1.69 per cent to close at 27,866.51 against 27,402.05 recorded in the preceding week. Also, the market capitalisation of the listed equities grew by N147 billion to close at N8.907 trillion. This was against the decline of N90.95 billion recorded in the preceding week to close at N8.76 trillion.