Lagos The Managing Director- , APT Securities and Funds Ltd., Malam Garba Kurfi, on Monday urged capital market operators to diversify in order to remain in business.
Kurfi made the plea in an interview with the News Agency of Nigeria (NAN) in Lagos.
He advised operators to diversify into other businesses in line with the current realities, to survive in 2016.
Kurfi said that many stockbrokers recorded huge losses in 2015 due to the persistent fall in prices of equities occasioned by slump in crude oil price at the global market.
He said operators who were able to make profit were those into other financial services such as Bureau De Change (BDC), pension services and investment advisers.
“The year 2015 was bad for most stock broking firms because of the lull in the equities market,’’ the stock broker said.
He said that the capital base of most stock broking firms had also been eroded by the market downturn.
Kurfi said that the issue of insecurity in the North East, declining foreign exchange reserves and weak currency had contributed to the market downturn.
NAN reports that 743.12 million shares worth N6.59 billion were traded by investors in 8,325 deals last week, against 1.46 billion shares valued at N13.80 billion exchanged in 13,648 deals in the preceding week.
The Financial Services Sector led the activity chart with 652.87 million shares worth N3.58 billion traded in 5,226 deals.
The Consumer Goods Industry followed with 30.54 million shares valued at N2.08 billion traded in 1,332 deals.
The third place was occupied by the Conglomerates Industry with 29.05 million shares worth N154.21 million traded in 483 deals.
The All-Share Index appreciated last week by 333.88 points or 1.26 per cent to close at 26,871.24 compared with 26,537.36 posted in the previous week.
Also, the market capitalisation which opened at N9.124 trillion increased by N114 billion to close at N9.238 trillion.
Unity Bank led the gainers’ table in percentage terms, increasing by 28.77 per cent or 12k to close at 94k per share.[pro_ad_display_adzone id=”70560″]
Skye Bank followed with a gain of 18.70 per cent or 23k to close at N1.46, while E-tranzact increased by 14.70 per cent or 14k to close at N3.20 per share.
On the other hand, PZ Industries topped the losers’ chart in percentage terms, shedding 7.18 per cent or N2.08 to close at N26.50 per share.
Fidson Healthcare trailed with a loss of 6.72 per cent or 18k to close at N2.50, while Avon Crown declined by 4.61 per cent or 7k to close at N1.45 per share. (NAN)