15 October 2014, Lagos – Some capital market operators on Wednesday attributed the persistent decline in the nation’s bourse to the warehousing of funds for electioneering activities and economic uncertainties in the country.
They told the News Agency of Nigeria in separate interviews in Lagos that uncertainties surrounding the 2015 general elections had slowed down interest in the equity market, especially as foreign investors seek other portfolio investment safe havens.
The Managing Director, APT Securities and Funds Limited, Mallam Garba Kurfi, said activities of politicians ahead of the forthcoming primary elections were affecting the entire market growth and development.
Kurfi noted that the market was witnessing huge supply of shares with less demand, noting that, some politicians were offloading their shares for electioneering purpose.
He explained that the development in the international market contributed to the lull in the market with foreign investors reducing their exposure in the equities market to minimise losses.
According to him, foreign investors, who are major players in the market are exiting due to crude oil price fluctuation to avoid further devaluation.
Kurfi said that market needed strong domestic investor participation to ensure sustainable growth and development, noting that, dominance of foreign investors would not help the market.
President, Association of Stockbroking Houses of Nigeria, Mr Emeka Madubuike, believed the market was reacting to various uncertainties in the country.
Madubuike said political, health and security uncertainties in the country led to investment flight from equities to fixed income securities.
He added that macroeconomic volatility attributed to the market trend, noting that, the effect would be temporary because of strong fundamental of listed equities and impressive price of stocks.
NAN recalls that Mr Oscar Onyema, the Chief Executive Officer, Nigerian Stock Exchange, recently urged investors not to panic over the market trend.