NAN-HE-9
Market
By Chinyere Joel-Nwokeoma
Lagos, Jan. 23, 2017 (NAN) Two capital market operators on Monday reiterated the need for harmonised exchange rate, quick passage of the Petroleum Industry Bill (PIB) and fixing of power sector to boost activities on the Nigerian Stock Exchange (NSE).
They told the News Agency of Nigeria (NAN) in separate interviews in Lagos that uncertainties in the sector had affected the NSE negatively.
“Instability in foreign exchange (Forex) will continue to scare foreign investors from the nation’s bourse,’’ the Managing Director, APT Securities and Funds Ltd., Malam Garba Kurfi said.
According to Kurfi, the government needs to address the wide gap in the foreign exchange market in order to attract investors.
“The country will encounter challenges with five different exchange rates, ‘’ he said.
Kurfi said that the listing of MTN on the exchange would attract more big companies to NSE, bring back the primary market, attract activities and increase market depth.
The Chief Operating Officer, Investigate Ltd., Lagos, Mr Ambrose Omordion, said the continuous delay in the passage of PIB was not too good for the oil and gas sector.
According to Omordion, a boom in the oil and gas sector would contribute to the depth of the capital market.
“The power sector still lacks clear cut direction to improve power generation and distribution.
“These are parts of the structural reforms expected to boost national business output,’’ he said.
He also attributed the unstable global economic outlook for 2017 to 2018 and the change of government in the U.S., to the lull in market.
Omordion said that the likely political and economic tension between U.S. and China, the world’s two largest economies, would trickle down to others, especially the emerging markets.
The capital market operator said the outcome of the first maiden Monetary Policy Committee (MPC) for 2017 would determine the market trend.
NAN reports that the Monetary Policy Committee (MPC) meeting of the CBN holds on Monday and Tuesday to review the interest rate.
Meanwhile, a total turnover of 1.34 billion shares worth N8.90 billion were exchanged by investors last week in 15,733 deals.
This is against 1.12 billion shares valued at N9.04 billion achieved in16,482 deals in the preceding week.
The Financial Services Industry was the most active in volume terms, accounting for 1.11 billion shares worth 3.92 billion traded in 9,429 deals.
The Conglomerates sector followed with 74.79 million shares valued at N82.35 million in 584 deals.
The third place was occupied by Consumer Goods Industry with a
turnover of 47.60 million shares worth N1.47 billion achieved in 2,463 deals.
The NSE All-Share Index lost 102.39 or 0.39 per cent to close at 26,223.54 compared with 26,325.93 posted in the preceding week.
The market capitalisation, which opened at N9.058 trillion, lost N35 billion or 0.39 per cent to close the week at N9.023 trillion. (NAN)
JNC /JI/AJA
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(Edited by Joseph Idika/Adeleye Ajayi)