Firm proposes strategy for capital market rebound
Besides, Mobolurin, who attributed Capital Bancorp’s achievements spanning 30 years corporate existence to adherence to ethical standard, and innovativeness, also decried the negative effects of over-dependence of foreign portfolio investors in the stock market.
Addressing Journalists at a news conference to announce Capital Bancorp’s 30th Anniversary celebration in Lagos, Tuesday, he noted that economic uncertainties ahead of the 2019 have propelled massive dumping of shares in the market.
Mobolurin said: “Everywhere in the world, politics and elections affect the stock market. However, people may worry about what will happen after the elections.
This may scare people away totally from the Nigerian stock market if they perceive the economy may become unstable.
“If investors have the impression that the country may breakup that is where I see a problem; politicians need to watch their utterances.
“When this happens, it is not only the foreign investors that are affected; even the Nigerian investors do not want to keep money in this economy if they perceive that the country is going to blow up.
“Nigerians must demand from the government and the politicians that they need stability in the political and economic system, even in currency.
They must demand for low inflation, because that is where the prosperity of every citizen can be assured.
“If our system become more stable and we improve in the ease of doing business environment, even Nigerians who have money abroad will start bringing them back here.”
He also encouraged the pension fund managers to increase their stake in the stock market, noting that the market acts as a hedge against inflation.
“If everybody is investing in debt instruments, what will happen when interest rate falls? It is important that we have a strong stock market.
The second thing is that if people perceive equity investment as risky and a no-go area, the rate of capital formation in the country will decline.
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