Lagos- Some financial experts on Monday expressed concerns that the general elections would stall economic activities until the third quarter of 2015.
They told the News Agency of Nigeria (NAN) in Lagos that uncertainties in the nation’s economy would normalise by July, 2015.
Mr Harrison Owoh, the Managing Director, H J Trust & Investment Ltd., said that economic activities would be determined by the outcome of the elections scheduled for March 28 and April 11.
Owoh said that activities in the economy would have not normalised by second quarter if not for postponement of the elections.
He said that the outcome of the general elections would determine the direction of the economy, noting that, investors would continue with their ‘wait and see’ attitude until July.
Owoh said that the general election was strategic to economic growth and development for both local and foreign investors.
He said there was a need for the country to diversify in its economy and not to focus attention on only oil production to avoid repeat of its current experience.
Mr Emeka Madubuike, the Managing Director, Compass Securities Ltd., said that market and economic stability would be determined by developments in the global oil market.
Madubuike said that the capital market would continue to witness cautious trading till end of second quarter due to the elections.
He said that the market would likely be upbeat from third quarter if the elections were free and fair.
Madubuike, however, expressed optimism that the market would bounce back because of strong fundamental, adding “this is the best time to invest”.
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Meanwhile, a turnover of 1.68 billion shares worth N21.32 billion were exchanged by investors in 21,062 deals last week.
This was against 2.08 billion shares worth N22.47 billion transacted in 20,805 deals in the preceding week.
The Financial Services Industry remained the most activity with 1.25 billion shares valued N10.57 billion transacted in 12,320 deals.
The Conglomerates sector followed with a turnover of 162.42 million shares worth N2.84 billion achieved in 1,526 deals.
The third place was occupied by the Consumer Goods Industry with 128.56 million shares valued N6.11 billion in 3,757 deals.
NAN reports that the All-Share Index appreciated by 720 points or 2.45 per cent to close at 30,103.81 due to price gains compared with 29,383.93 achieved in the previous week.
The market capitalisation rose by N241 billion to close at N10.045 trillion against the N9.804 trillion recorded in the previous week.
UAC led the gainers’ table, appreciating by 18.74 per cent or N6.37 to close at N40.37 per share.
Union Bank followed with a gain of 15.76 per cent or N1.34 to close at N9.84, while Julius Berger appreciated by 15.55 per cent or N5.92 to close at N44 per share.
On the contrary, Okomu Oil Palm topped the losers’ chart, dropping by 14.22 per cent or N5.06 to close at N30.52 per share.
Academy Press dipped 12.93 per cent or 15k to close at N1.01, while National Aviation Handling Company decreased by 8.30 per cent or 39k to close at N4.31 per share. (NAN)
