Friday, March 29, 2024

Increase stake in stock market, CIS urges investors

The Chartered Institute of Stockbrokers has called on the investing public to seize the opportunities available in the capital market to increase their stakes in quoted companies.
President of the CIS Council, Mr. Oluwaseyi Abe, explained that while market fundamentals remained strong, share prices of many blue chip companies had been trading below their intrinsic values, creating opportunity for investors.
Giving a brief analysis of the market performance, Abe said the equities’ market had been depressed throughout the year due to uncertainty about the economy, which led to the exit of investors.
According to him, the Nigerian Stock Exchange’s All-Share Index declined by 18.19 per cent, while the market capitalisation of the listed equities plunged by N1.731 trillion.
He explained that the major problems facing stockbrokers were dearth of the market.
“The market is dying, so government needs to do a whole lot. They said we should recapitalise and we have done that; there must be a good market place for us to interplay and government should start implementing policies that will encourage companies to be listed on the Exchange, especially small businesses, because they are the engine of any strong economy,” he said.
Abe, who explained that the market mirrors the economy, however, stressed that the Nigerian economy was bound to pick up.
He also said that the market would recover in the near future.
Explaining reasons behind his optimism, Abe said securities issues and corruption were being addressed and the management of the Naira exchange rate was being looked into.
He added that the current administration was expected to utilise the capital market to fund the infrastructural gap in the economy in the wake of dwindling revenue from crude oil.

Popular Articles