Two capital market operators on Tuesday urged the Federal Government to review the foreign exchange policy and pursue friendly economic policies to bring the country out of recession.
Malam Garba Kurfi, Managing Director, APT Securities and Funds Ltd. and Ambrose Omordion, Chief Operating Officer, InvestData Ltd. spoke in interviews with the News Agency of Nigeria (NAN) in Lagos.
Kurfi said that government should review its current flexible foreign exchange policy to revamp the economy and attract investors.
The expert said that the flexible exchange policy was affecting the capital market as most foreign investors had moved to commodities market rather than investing in the nation’s bourse.
He said that there was the need for harmonisation of the exchange rate and lapse on the supply side that causes artificial scarcity.
Kurfi said that the nation economy was in trouble due to multiple exchange rates.
He said that government should replace the board of financial institutions such as the Securities and Exchange Commission
(SEC), Pension Commission and National Insurance Commission that were dissolved in 2015.
“There are many crises that need to be addressed for the economy to move forward and the earlier the better,” Kurfi said.
Also, Omordion said that clear cut economic policy was long overdue to revitalise the economy.
Omordion said that investors were awaiting new economic policies that would redirect investment decisions and boost investors’ confidence.
He urged investors to embrace value stocks with good fundamentals and sustainable dividend policies.
NAN reports that a total turnover of 990.58 million shares worth N18.82 billion were exchanged by investors in 14,917 deals last week against 1.34 billion shares valued at N8.90 billion transacted in 15,733 deals in the corresponding week.
The Financial Services Industry remained the most active in volume terms and led the activity chart with 664.647 million shares worth N3.89 billion traded in 8,056 deals.
It has contributed 67.10 per cent and 20.70 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 133.64 million shares worth N2.60 billion transacted in 2,653 deals.
The third place was occupied by Conglomerates sector with a turnover of 63.19 million shares valued at N88.83 million achieved in 635 deals.
The NSE All-Share Index and market capitalisation appreciated by 0.40 per cent to close the week at 26,328.22 compared with 26,223.64 achieved in the preceding week.
Similarly, the market capitalisation which opened at N9.023 trillion rose by N36 billion to close at N9.059 trillion.
Also, all other indices finished higher during the week with the exception of the NSE Premium Index that depreciated by 0.13 per cent, while the NSE ASem Index closed flat.
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