Lagos – Some capital market operators have expressed optimism that the nation’s bourse would experience a rebound after the February 14 presidential elections.
They told newsmen in separate interviews in Lagos that the market would witness enhanced activity if the presidential election is seen to be free and fair.
Alhaji Rasheed Yussuf, the immediate past President, Association of Stockbroking Houses of Nigeria (ASHON), said that the market would not experience any major movement until after the elections.
Yussuf said that the presidential election was critical to the market growth and development in 2015.
He said there were many happenings in the economy that created uncertainties in the minds of investors.
According to him, currency fluctuation caused by fall in crude oil price at the international market and fears of further devaluation of the Naira have heightened uncertainties in the nation’s economy.
Yussuf said that both local and foreign investors had developed ‘wait and see’ attitude to ascertain what would be the outcome of the election.
“Once the presidential election is decided investors will start taking position,” Yussuf said.
He, however, urged local investors to increase their participation in the market, noting that, stocks would rebound once presidential election was decided.
Yussuf said that “local investors are not taking foreign exchange exposure and should not be concerned about development in foreign exchange market.”
Mr Bayo Olugbemi, President, Institute of Capital Market Registrars (ICMR) said that the nation’s bourse would not experience stability without increased participation of local investors.
Olugbemi said that increased participation of local investors was crucial to market growth and development considering present realities in the nation’s economy.
He said that market operators should map out strategies to increase the participation of local investors to cushion the effect of foreign portfolio investors that were pulling out of the market due to foreign exchange pressure.
Meanwhile, the All-Share Index last week lost 249.98 points or 0.84 per cent to close at 29,562.07 points compared with 29,812.05 points achieved in the preceding week due to price losses.
Also, the market capitalisation depreciated by N83 billion or 0.84 per cent to close at N9.847 trillion against N9.930 trillion posted in the previous week.
R.T.Briscoe led the losers’ chart in percentage terms, dropping by 12.86 per cent or 0.09 per cent to close 61k per share.
Diamond Bank trailed with a loss of 10.50 per cent or 42k to close at N3.58 per share, while May and Baker fell by 8.86 per cent or 14k to close at N1.44 per share.
On the other hand, Dangote Sugar Refinery led the gainers’ table for the week in percentage terms, appreciating by 23.33 per cent or N1.29 to close at N6.82 per share.
PZ Industries appreciated by 18.56 per cent or N4.64 to close at N29.64, while Ikeja Hotel gained 12.59 per cent or 34k to close at N3.04 per share.
Also, a turnover of 2.21 billion shares worth N28.96 billion were traded by investors in 19,495 deals last week.
This was against 2.12 billion shares valued N25.94 billion exchanged in 21,044 deals in the preceding week.
The Financial Services sector remained the most active with 1.36 billion shares worth N10.22 billion transacted in 11,030 deals.
The Oil & Gas industry followed with a turnover of 439.58 million shares valued N8.40 billion achieved in 1,723 deals.
