Home News N350bn fund: Experts appeal to NLC to halt proposed strike

N350bn fund: Experts appeal to NLC to halt proposed strike


Lagos – Some financial experts has advised the NLC to shelve its proposed strike in view of the disruption it could bring to the planned injection of N350 billion to the economy this week.

The News Agency of Nigeria (NAN) reports that the Federal Government plans to start releasing the N350 billion it intended to use quarterly to “reflate” the economy this week.

The experts told NAN in Lagos that the strike would have ripple effects on the economy, particularly the capital market if it was not nipped in the bud.

Prof. Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University, Lafia, said the strike was not necessary now in view of the planned injection of the fund.

Uwaleke said the release of the fund would increase activities at the equity end of the capital market.

“The major factor that will revive the stock market this week is the release of N350 billion for capital projects as widely reported last week”.

Alhaji Rasheed Yussuf, a former President, Association of Stockbroking Houses of Nigeria (ASHON), said there was the need to sustain investor’s positive reaction to the resolution of the 2016 budget impasse.

Yussuf said investors’ expectation of faithful implementation of the capital budget contributed to the current capital market rebound.

He said that implementation of capital projects would lead to creation of jobs and increased demand for goods and services.

“The overall effect will be that manufacturing companies will make more profit and that will lead to strong demand for their shares.

“So, the market is expected to continue to show a strong progress.

“When capital vote is released, it means uncompleted projects and new projects will commence,” he said.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., Lagos, said the release of funds would boost investors’ confidence in the capital market.

Meanwhile, the NSE All-Share Index last week appreciated by 739.43 points or 2.88 per cent to close at 26,441.03 against 25,701.60 posted in the previous week.

Also, the market capitalization, which opened at N8.841 trillion, grew by N258 billion or 2.92 per cent to close at N9.099 trillion.

Tiger Brand led the gainers’ table in percentage terms by 50.13 per cent or N2 to close at N5.99 per share.

It was followed by Diamond Bank which gained 44.29 per cent or 62k to close at N2.02, while FCMB Group increased by 30.30 per cent or 30k to close at N1.29 per share.

On the other hand, University Press topped the losers’ chart during the week in percentage terms by 14.21 per cent or 81k to close at N4.89 per share.

MRS Nigeria trailed with a loss of 9.73 per cent or N4.36 to close at N40.47, while Caverton dropped by 8.48 per cent or 14k to close at N1.51 per share.

A turnover of 1.83 billion shares worth N14.47 billion were exchanged in 20,058 deals last week in contrast to the 910.66 million shares valued at N6.41 billion traded in 15,023 deals in the preceding week.

The Financial Services sector led the activity chart in volume terms, accounting for 1.47 billion shares worth N10.69 billion in 11,038 deals.

The Conglomerate sector followed with a total of 187.03 million shares valued at
N313.29 million exchanged in 1,545 deals.

The third place was occupied by the Consumer Goods industry with turnover of 74.73 million shares worth N2.05 billion achieved in 3,633 deals. (NAN)

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