Stakeholders address investors’ concerns about stock market

Industry stakeholders on Thursday said the Nigerian capital market had recorded significant growth in recent years, expressing optimism that the pressure from the nation’s macro-economic fundamentals on the market would be short-lived.

Speaking at an Investors’ Forum in Lagos organised by Capital Bancorp Limited, the speakers identified investment opportunities in the country and proffered solutions to reinforce investor confidence.

The forum attracted diverse participants such as market regulators, operators, domestic and foreign investors, analysts and portfolio managers.

The Chief Executive Officer, Nigerian Stock Exchange, Mr. Oscar Onyema, said the bourse was making efforts to promote the Nigerian capital market as an African hub for growth companies, and attract more domestic flows into the market.

It said they would “implement a more competitive price structure in conjunction with the regulator and other market participants, as well as intensify efforts towards developing a more sustainable market.

Onyema, who was represented by the Chief Risk Officer, NSE, Mr. Tunji Kareem, noted that the market had been bearish in recent times due to economic fundamental and the decline in oil prices, adding that “despite this, investors remain optimistic about our market”.

The Managing Director and Chief Executive Officer, Capital Bancorp Plc, Mr. Aigboje Higo, stated that investors, who had remained in the stock market post 2009 and invested wisely, had received competitive returns.

Higo, who provided statistical analysis from market data, noted that many of the investors had realised an average of over 50 per cent returns, while some realised above 200 per cent.

He however highlighted some factors responsible for domestic investors’ apathy to the stock market as loss in value of investment, loss of investment, sharp practices among some operators, ineffective regulators, perception that the market was not fair, bottlenecks associated with the payment of dividend and bonus shares and lack of market liquidity.