Operators blame govt, politicians over N1.9trn investors’ loss in stock mark


[et_pb_section bb_built=”1″ _builder_version=”3.0.47″ custom_padding=”0|0px|58.3398px|0px|false|false”][et_pb_row make_fullwidth=”on” _builder_version=”3.17.2″ module_alignment=”center”][et_pb_column type=”3_5″][et_pb_text _builder_version=”3.17.2″ header_text_color=”#1e73be” header_text_align=”left” text_text_color=”#1e73be”]

Operators blame govt, politicians over N1.9trn investors’ loss in stock market


Operators in the capital market have attributed the huge losses suffered by investors in the stock market in 2018 to the activities of the government and political parties.

The Nigerian Stock Exchange, NSE, market capitalization which represents total value of investments in the stock market, declined by N1.9 trillion to close the year last Monday at N11.7 trillion, about 17.8 percent down from N13.609 trillion it opened the year in January 2018.

Speaking to Vanguard on the 2018 market outcome, Chairman, Association of Stockbroking Houses of Nigeria, ASHON, Chief Patrick Ezeagu said: “Our market is bleeding. Foreign portfolio investors and their indigenous counterparts have embarked on massive sell down of shares and other financial instruments with attendant effect of gross erosion of values despite stellar performances of many listed securities.   For instance, the Nigerian Stock Exchange’s All Share Index has been sliding since the beginning of the year, returning negative year-to-date performance of 17.8 as at Monday, December 31, 2018. Innocent investors watch helplessly as their investments are plundered by the bearish market exacerbated by prevailing uncertainties in the polity created by the political class.”


The floor of Stock exchange

Ezeagu who is also the Managing Director, Solid Rock Securities and Investment Limited further said: “It has been proven that there is a correlation between the development of the capital market and economic growth and development of any country.   As stockbrokers, trained to create wealth and manage investments, we hasten to say that projections cannot be made under the prevailing atmosphere of systematic risk. Consequently, this increases the country’s risk profile while investment decision is obviously threatened. This explains why investors are panicky.”

Also a chartered stockbroker and Managing Director, Sofunix Investment & Communications Limited, Mr Sola Oni, also stated: “ The market has good fundamental but the political activities and monetary policies has led to the flight of foreign investors who are key stakeholders in our stock market. At the moment, performance indicators such as the All-Share Index and market capitalization on The Nigerian Stock Exchange are weak, reflecting continuous downswing.

“This is expected to continue till the end of the first quarter as 2019 election fear is palpable. The usually expected Santas Claus Rally between December and early January may be moderated by the current mood of the market, characterized by investor apathy. Real investors are likely to adopt wait and see attitude while speculators may intensify moving their asset classes from variable to fixed income.   But discerning investors will always take advantage of low valuation of stocks and strong market fundamentals to beef up portfolio. Emerging activities of commodity exchanges is expected to create more investment opportunities in the market as this is consistent with the government’s plan to upgrade investment in agriculture which is the base of commodity products.”

Looking into the future the General Secretary of Association of Issuing Houses of Nigeria, ASHON, Mr Sam Onukwue, said: “As the current worrisome operating environment that characterizes our financial markets deepens, we appeal to the political class to moderate their activities and utterances by acting in such a manner as will engender investors’ confidence in the Nigerian economy and by implication our capital market. This becomes compelling as we approach general elections next year.”

[/et_pb_text][/et_pb_column][et_pb_column type=”2_5″][et_pb_code _builder_version=”3.17.2″]<script async src=”//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js”></script><!– [et_pb_line_break_holder] –><!– sidebar –><!– [et_pb_line_break_holder] –><ins class=”adsbygoogle”<!– [et_pb_line_break_holder] –> style=”display:inline-block;width:300px;height:250px”<!– [et_pb_line_break_holder] –> data-ad-client=”ca-pub-3648045619743094″<!– [et_pb_line_break_holder] –> data-ad-slot=”5448320964″></ins><!– [et_pb_line_break_holder] –><script><!– [et_pb_line_break_holder] –>(adsbygoogle = window.adsbygoogle || []).push({});<!– [et_pb_line_break_holder] –></script>[/et_pb_code][et_pb_sidebar _builder_version=”3.17.2″ area=”cs-5″ background_color=”#ffffff” /][et_pb_code _builder_version=”3.17.2″]<script async src=”//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js”></script><!– [et_pb_line_break_holder] –><!– custom size –><!– [et_pb_line_break_holder] –><ins class=”adsbygoogle”<!– [et_pb_line_break_holder] –> style=”display:inline-block;width:305px;height:546px”<!– [et_pb_line_break_holder] –> data-ad-client=”ca-pub-3648045619743094″<!– [et_pb_line_break_holder] –> data-ad-slot=”1760357391″></ins><!– [et_pb_line_break_holder] –><script><!– [et_pb_line_break_holder] –>(adsbygoogle = window.adsbygoogle || []).push({});<!– [et_pb_line_break_holder] –></script>[/et_pb_code][/et_pb_column][/et_pb_row][/et_pb_section]