…As equity market continues to wobble
By Nkiruka Nnorom
Operators in the nation’s capital market have called on the newly appointed Finance Minister, Mrs Kemi Adeosun, to chart clear economic policies that will leave nobody in doubt of where the country is heading to in order to restore investors’ confidence in the market. They also called on the minister to deemphasize the practise of laying more emphasis on the progress of the money market above the capital market, saying that both segments of the economy are ‘two sides of the same coin.’
They affirmed that unclear policy thrust had hitherto discouraged foreign and local investors from investing in the market. Meanwhile, activities on the equity market have continued to wobble two days after the ministerial appointments.
Though the market capitalisation of all listed equities rose by N11 billion, representing 0.1 per cent to close at N9.974 trillion on Wednesday, the gains was wiped off Thursday with the capitalisation slipping by N85 billion or 0.8 per cent to close at N9.899 trillion.
Similarly, the all Share Index, which rose by 33.66 basis points, representing 0.1 per cent appreciation on Wednesday to settle at 29,014.78 points, went down by 0.7 per cent at the close of transactions on Thursday to close at 28,798.67 points.
According to Mr. Chinenye Anyanwu, Managing Director, Dependable Securities Limited, getting the capital market back on track requires vibrant private sectors which would help drive the economy, adding that the capital market cannot thrive in a sluggish economy.
Besides, he said that the government should create enabling environment to drive private sector, while privatisation should be speeded up. “The economy should be private sector driven; every other organ that has not been privatized should be privatised. So privatization should be speeded up by the new minister and let them provide enabling environment. There are enough private investors to power this economy,” he said.
“Hitherto, it was as if money market is the emphasis; Money and capital market are two sides of the same coin, if you leave any of them, the economy will suffer. She needs to see the economy itself as one in making policy thrust. One of the advantages that will come from the appointment is that there will be policy thrusts and statement. So far, what we have tried to do is to decipher where the president is going with his decisions and actions.”
“The finance minister will have to give us a policy thrust and statement and let us we know where she is going to and that has actually held at bay the foreign investors. This market is made up of 60 per cent of foreign investors and all of them have bolted away, standing on the wings expecting this pronouncement.”