Temitope
Temitope Akinola
Vanguard - The Chief Executive Officer of the Nigerian Stock Exchange, NSE, Mr. Oscar Onyema, has said the uncertainties in Nigeria's economic policies is crippling the nation's capital market.
Onyema who spoke in a chat with newsmen in Lagos said, investors detest uncertainty but would begin to react positively if the gray areas are removed. The NSE boss said the current challenges the market is facing is reflective of the economy which began to face significant setbacks from crude oil prices which has had effect on the foreign exchange rate, and created uncertainties in the marketplace.
He added that if the uncertainties around exchange rate and economic policies are removed, it will generate some positive reaction from the investors.
The equities market has continued to experience losses for the fourth consecutive week as the local bourse closed in the negative at the end of trading session on Thursday, August 27, 2015.
The All Share Index (ASI) also declined by 1,656.58 basis points or 5.5 per cent to close at 28,221.75 points on Thursday from 29,878.33 points on Friday, August 21, 2015. Similarly, market capitalization slumped by N542 billion or 5.3 percent during the same period, closing at N9.699 trillion from N10.241 trillion on Friday, August 21, 2015.
It was recorded that on Monday alone, the twin indicators, the ASI and market capitalisation, crashed the most, dropping by 2.2 percent, an action of the NSE termed an 'over-reaction by investors'.
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Onyema who spoke in a chat with newsmen in Lagos said, investors detest uncertainty but would begin to react positively if the gray areas are removed. The NSE boss said the current challenges the market is facing is reflective of the economy which began to face significant setbacks from crude oil prices which has had effect on the foreign exchange rate, and created uncertainties in the marketplace.
He added that if the uncertainties around exchange rate and economic policies are removed, it will generate some positive reaction from the investors.
The equities market has continued to experience losses for the fourth consecutive week as the local bourse closed in the negative at the end of trading session on Thursday, August 27, 2015.
The All Share Index (ASI) also declined by 1,656.58 basis points or 5.5 per cent to close at 28,221.75 points on Thursday from 29,878.33 points on Friday, August 21, 2015. Similarly, market capitalization slumped by N542 billion or 5.3 percent during the same period, closing at N9.699 trillion from N10.241 trillion on Friday, August 21, 2015.
It was recorded that on Monday alone, the twin indicators, the ASI and market capitalisation, crashed the most, dropping by 2.2 percent, an action of the NSE termed an 'over-reaction by investors'.
Read more on the story
