Thursday, 28th March 2024
To guardian.ng
Search
Breaking News:

Stockbrokers urge end to destablisation of capital market

By Helen Oji
29 August 2018   |   4:11 am
Citing the negative impact of unguarded utterances by actors in the political space on the nation’s capital market, the Association of Stockbroking Houses of Nigeria (ASHON) has urged an end to the development.

Citing the negative impact of unguarded utterances by actors in the political space on the nation’s capital market, the Association of Stockbroking Houses of Nigeria (ASHON) has urged an end to the development.

In a statement by its General Secretary, Sam Onuokwe, the association stated that the political tension in the polity was affecting investors’ sentiments, asset valuations, and portfolio allocation decisions.

Indeed, investors are counting their losses of over N2 trillion. The figure is derived from the N15.549 trillion recorded in market capitalisation at the close of transactions on February 28 this year.

Specifically, after the January and mid February rallies, the market recorded unprecedented reversal in fortunes contrary to predictions.

The market capitalisation has since nosedived, closing at N12.966 trillion at the close of transactions yesterday. The new figure represents a N2. 583 trillion or 19.9 per cent loss over the February statistics.

Also, the All-share index declined by 7,814.33 points or 22 per cent to 35, 516.21 from 43,330.54 achieved in the period under review.

According to ASHON, foreign portfolio investors and their indigenous counterparts have embarked on massive sell down of shares and other financial instruments despite improved performances of many listed securities.

It enjoined the political class to moderate its activities and utterances by acting in such a manner that could boost investors’ confidence and grow the economy.

It said: “For instance, the Nigerian Stock Exchange’s All Share index has been sliding since the beginning of the year, returning negative year-to-date performance of 7.4 per cent as at Monday, August 13, 2018. Innocent investors watch helplessly as their investments are plundered by the bearish market exacerbated by the prevailing uncertainties in the polity created by the political class.

“There is a reported significant drop in the nation’s reserve position to a four-month low of $47 million as at the end of July which is wholly attributed to capital repatriation by foreign portfolio investors. Trading statistics on the securities markets in Nigeria have been reflecting investors’ apathy to unprecedented level of tension that portends likely breakdown of law and order in the 2019 general elections.”

In this article

0 Comments