LAGOS – Some capital market operators on Monday said there was the need for enhanced local participation in the nation’s capital market for sustainable growth in the second quarter.
They told the News Agency of Nigeria (NAN) in separate interviews in Lagos that the market would not experience sustainable growth and development without increased retail investor contributions.
Mr Bayo Adeleke, National Secretary, Independent Shareholders Association of Nigeria, said that regulators should not depend on foreign investors for market growth.
Adeleke said that regulators should ride on the back of 2013 market rebound to showcase the bourse as a platform for long term capital formation.
He said that regulators should increase their market awareness strategies across the country.
“This subject is not taught in school and we should not assume that everyone knows,” he said.
Adeleke said that the market lost one trillion naira during the first quarter due to exit of foreign investors and tight monetary policy of the Central Bank of Nigeria (CBN).
Contributing, Mr David Adonri, Chief Executive Officer, Lambeth Trust & Investment, said that developments experienced in the market in the first quarter had called for enhanced retail investors’ participation.
Adonri said that the first quarter of 2014 ended negatively for the equities market due to the fall in value of the Naira, tightened monetary policy and suspension of the CBN Governor.
He added that the direction of the market in the second quarter would be defined by the impact of quoted companies’ 2013 results and improved confidence of local investors.
“Since the fiscal buffers are gradually being replenished, the threat of further monetary tightening to defend the Naira may no longer exist,” Adonri said.
Meanwhile, NAN reports that the All-Share Index appreciated by 380.98 points or 0.99 per cent to close at 38,712.76 points against 38,331.78 points achieved in the preceding week.
The Market Capitalisation which opened at N12.313 trillion grew by N122 billion or 0.99 per cent to close at N12.435 trillion.
UACN Property Development Company led the gainers’ table in percentage terms, growing by 20.38 per cent or N4.26 to close at N25.16 per share.
NPF Micro Finance Bank increased by 19.23 per cent or 15k to close at 93k, while Oasis Insurance grew by 16 per cent or 8k to close at 58k per share.
On the contrary, Fidelity Bank topped the losers’ chart, shedding 12.95 per cent or 29k to close at N1.95 per share.
CAP trailed with 11.47 per cent or N4.66 to close at N35.96, while Courterville Investments dropped by 10.94 per cent or 7K to close at 57k per share.
Meanwhile, a turnover of 1.94 billion shares worth N21.26 billion in 21,641 deals were exchanged last week against 1.87 billion shares valued N26.81 billion traded in 21,632 deals in the previous week.
The financial services industry led the activity chart with 1.68 billion shares worth N12.69 billion traded in 12,631 deals.
The consumer goods industry followed with a turnover of 74.11 million shares worth N5.33 billion accounted in 3,439 deals.
The third place was occupied by the conglomerates sub-sector with 63.863 million shares valued N576.14 million achieved in 1,167 deals. (NAN)
