Capital market operators seek increase in domestic investors’ participation on NSE

The Association of Stockbroking Houses of Nigeria (ASHON) on Friday said that the nation’s capital market would experience stability with increased participation of domestic investors.
The ASHON President, Mr Emeka Madubuike, said this in Lagos. Madubuike said that the association would partner market regulators and operators to ensure more investor education in 2015 to engender domestic investors’ confidence in the market.
He called on both retail and institutional domestic investors to embrace the market, saying that, “this is the best time to buy”.
Foreign investors, between January and November 2014, pulled out N793.17 billion from the exchange. The figure, according to statistics released by the Nigeria Stock Exchange, represents 67.5 per cent increase on the N473.16 billion foreign outflow from the market in the corresponding period of 2013.
Madubuike said that increased participation of local investors would reduce the influence of foreign investors in the market. He said that market security had increased in the last two years with drastic reduction in market based infractions. “The market is getting better in terms of security and level of infraction has reduced in the last two years,” Madubuike said.
He said that infractions being treated in the market were those recorded before the market crash of 2008 and 2009. Madubuike said the fall in oil price at the international market, uncertainties surrounding 2015 elections, high foreign exchange and interest rates, devaluation of naira were responsible for downturn in the market. He said that uncertainties in the economy would reduce with successful elections and called on the Federal Government to ensure a free and fair election to sustain investors’ confidence.