Stakeholders Predict Growth In Capital Market In 2013

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Some capital market operators on Wednesday expressed optimism that the market would surpass the growth of 35.45 per cent recorded in 2013. They told our correspondent  in Lagos that the market would witness more foreign participation and reforms to ensure more growth.

Mr Emeka Madubuike, the President, Association of Stockbroking Houses of Nigeria, said that the market would continue on its recovery path if the initiatives aimed at boosting investor confidence were implemented. Madubuike said that the initiatives included the introduction of the market makers and the prompt submission of quarterly reports by listed companies.

He said that the resolution of operators’ debts by the release of N22.8 billion forbearance package by the Federal Government would free funds for investment.

Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that early passage of the budget, unlike in the past, showed government’s seriousness to economic growth. According to him, the Federal Government’s decision to invest some portion of the Sovereign Wealth Fund will deepen the market. Kurfi said that the cancellation of the Value Added Tax and the stamp duty on transactions in the market would increase participation. Mr David Adonri, the Managing Director, Lambeth Trust and Investment Ltd., called on government to reduce its borrowing in 2013 to ensure movement of funds to real sector and the equities.

Adonri stressed the need for stability of macro-economic policies, infrastructural development and sustenance of reform initiatives to ensure economic growth. Mr Timothy Adesiyan, the President, Nigerian Shareholders Solidarity Association, called for enactment of laws that would encourage listing on the Nigerian Stock Exchange. Adesiyan said that investors’ protection should be paramount in 2013. Our Correspondent reports that the Nigerian Stock Exchange All-Share Index grew by 35.45 per cent or 7,348.18 points in 2012 to close the year at 28,078.81 from 20,730.63 recorded in 2011.

Also, the market capitalisation grew by N2.4 trillion to close at N8.97 trillion on Dec.31 from the N6.53 trillion it opened in January, 2012. The Tide also reports that by the performance, the nation’s bourse has been ranked as third performing stock exchange in Africa. Egypt led other African markets with 49.56 per cent on year-to-date return. It was followed by Kenya with 39.32 per cent growth rate.