By Aliyu DANLADI
Some financial analysts on Monday said there was canvass the need for government to initiate innovative polices to enhance local operators’ participation and confidence in the stock market.
They urged the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) to pursue the polices.
The analysts spoke on the backdrop of the deteriorating low patronage of stocks in the market.
The Chief Relationship Officer, Foresight Securities and Investment Ltd, Mr Fakrogha Charles, said market regulators should pursue friendly policies and strategies that would restore the local investors’ confidence back to the market.
Charles said that increasing domestic investor participation in the market became necessary as foreign investors might not stay forever to help the country due to economic uncertainties.
He said that foreign investors were prone to currency fluctuation and price volatility and could exit at any given time unlike the local investors.
According to him, the local operators are supposed to be the key players in the market and not foreign operators as seen and envisaged by the regulatory bodies.
He said that the failure of SEC and NSE to develop local investors made them to shun the Nigerian capital market.
He said that emphasis by SEC and NSE on foreign investors to the detriment of local investors led to their low patronage in the equities market.
“Policies aimed at increasing the participation of local investors should be the priority of the SEC and NSE.
“The foreign operators are visiting and panic investors can leave the market at will and at any slight economic challenge.
“Until the local operators are encouraged and inspired to fully participate in the market, the Nigerian stock market may not record significant growth,’’ Charles said.
He said that the market regulators had not done much to ensure development of local investors for increased participation in the market
Charles said that more companies should be encouraged to list on the exchange to deepen the market and create activities.
According to him, market regulators should stop borrowing and implementing foreign policies that will have negative impact on the market.
He urged the regulatory bodies to continue to develop the market to enhance the participation of retail investors.
The National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr Sunny Nwosuurged the Federal Government to embrace the capital market for long-term infrastructure projects.
Nwosu said that the government should use the market more to boost liquidity.
“Funding of long-term infrastructure projects must come through the capital market for growth and development.
“Every developing economy is tied to its capital market,’’ he said.
Nwosu said that there must be a linkage between the economy and the capital market for Nigeria to witness substantial growth and development.
