NAN-HE-5
Market
By Chinyere Joel-Nwokeoma
Lagos, Nov. 24, 2016 (NAN) A financial expert on Thursday attributed the prolonged downturn on the Nigerian Stock Exchange (NSE) to weak macroeconomic fundamentals.
Dr Glenn Prince-Abbi, Executive Consultant/Chief Executive Officer, Espera Global Corporation, told the News Agency of Nigeria (NAN) in Lagos that capital market headwinds was due to the prevailing economic situation.
“These headwinds in the market are not stand-alone events which are cut off from the Nigerian economic ocean.
“Hence the capital market challenges that we currently see in Nigeria are a full mirror-image of what is happening in the Nigerian economy,’’ he told NAN.
Prince-Abbi said that the market could only experience improved growth and development with a healing of the economy
He said that all economic policy players, monetary and fiscal, must do their creative best to accelerate the needed healing process required by the nation’s economy.
“The capital market is not ensconced from the prevailing economic situation in Nigeria neither can it ever be.
“These headwinds in the market are not stand-alone events which are cut-off from the Nigerian economic ocean.
“Essentially, the economy must get back to growth; real sector activities must build up and then this will steadily have a positive impact on the capital market.’’
Prince-Abbi noted that the nation’s weakened currency when compared with the dollar, led to wiping out of value and real wealth in the market and persisting bearish trend.
According to him, a progressively weakened real sector production base cannot sustain a growing capital market.
He noted that the capital market uncertainties would increase when the U.S. president-elect, Mr Donald Trump’s efforts would unfold policies aimed at bringing capital back to America.
NAN reports that the All-Share Index between Nov. 14 and Nov. 23 lost 409.81 points or 1.81 per cent to close trading on Nov. 23 at 25,517.00 compared with 25,986.81 posted on Nov. 14.
Also, the market capitalisation during the period under review shed N161 billion or 1.80 per cent to close trading on Nov. 23 at N8.784 trillion against N8.945 trillion achieved on Nov. 14. (NAN)
JNC/BOLA/PDE
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(Edited by Bola Akingbehin/Peter Ejiofor)