Capital market operators seek political stability to boost investment

Some capital market operators have called on the Federal Government to ensure political stability in the country to boost investor participation in the capital market.

They told newsmen in separate interviews in Lagos that the current political developments were affecting the growth of the market.

Malam Garba Kurfi, Managing Director, APT Securities and Funds Ltd., said that many investors were adopting “wait and see” on investment decisions because of new developments in the political arena.

Kurfi said that the market was information driven, adding that government at all levels should be sensitive to information being released to the investing public.

Alhaji Rasheed Yussuf, the immediate past President, Association of Stockbroking Houses of Nigeria (ASHON), said that slow down in market was due to the “holiday declared by high net worth investors.”

Yussuf said that investors were waiting for positive news or results that could cause movement of funds to the market.

He, however, urged investors to take advantage of low price of equities in anticipation of improved third quarter results to increase their stakes in the market. Mr David Adonri, Chief Executive Officer, Lambeth Trust & Investment Ltd., said that outcome of the Monetary Policy Committee (MPC) meeting of Sept. 23 and   Sept. 24 might set a new course for the market.

Adonrii said that further tightening of monetary policy could force financial assets away from equities, but added that increase in crude oil earnings might prevent such development.

[Vanguard]