Operators say stock market lull to persist till 2016

folarin okunola

October 9, 2015 1:26 PM

Mr Okechukwu Unegbu, a former President, Chartered Institute of Bankers (CIBN), said the capital market would continue to nosedive due the economy’s over-dependence on foreign investors’ cash

A security officer checks a man outside the Nigerian Stock Exchange in Lagos April 8, 2014. REUTERS/Akintunde Akinleye

Reports reveal that capital market operators on Thursday stated that instability and sell pressure in the nation’s bourse would persist till the first quarter of 2016.

According to the News Agency of Nigeria (NAN), the operators said, in Lagos, that the market in the fourth quarter would be dominated by sell pressure due to forthcoming festivities at the end of the year.

Mr Okechukwu Unegbu, a former President, Chartered Institute of Bankers (CIBN), said the capital market would continue to nosedive due the economy’s over-dependence on foreign investors’ cash and dependence on policies introduced by regulators.

The report also quotes Unegbu as saying that the foreign exchange risk would continue to discourage foreign investors from investing in the economy.

“We are over-dependent on foreign investors who are eager to leave the market anytime negative things happen and this is not good for our market,’’ Unegbu said.

READ: Stocks slip as fund managers desert market

He said the capital market regulators need to develop ways to boost local investors’ participation in the market.

He also said that contrary to expectations the ministerial list released by the Federal Government would not affect market performance.

He called on investors to take advantage of low prices of equities and increase their stake in the market as a means of boosting the economy.

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