Business
Current Price Movements On NSE, Artificial – Expert
A stock market expert, Mr Edwin Ikhinmwin, last Wednesday, said the current price movements in the capital market was more of artificial than real.
Ikhinmwim, Managing Director, Emi Capital Resources Ltd., told newsmen in Lagos that capital market could not be separated from the nation’s economy.
He said that the country was at the moment suffering from the economic challenges which had its bears on the capital market, adding, “A sick economy reflects a sick capital market”.
“The market flourishes with fundamentals, but for now, the price movement seems to be artificial. And come to think of it, the market is not disassociated from the larger economy.”
“Whatever affects the economy affects the market,” he said.
Ikhinmwin stressed the need for the government and regulatory authorities to address the illiquidity for the capital market to move forward.
He said that infrastructure development should equally be addressed to encourage small and medium scale enterprises to play its role in the market.
“There is need for infrastructure development. Nigeria needs to boost its export and encourage good road network for businesses to move.”
“Conducive atmosphere is also needed for foreign investor to invest in the country,” he said, adding that investors’ confidence will be restored when all these were effectively addressed.
“What we are talking about is investors’ confidence that is eroded. To bring the market up again, investors confidence needed to be restored,” Ikhinmwin said.
He said that prices of stocks have been fluctuating because “investors burnt their fingers after the global financial crisis” adding that they had engaged in panic buying to recoup their lost investment.
According to him, all the people that have burnt their fingers will not want it burnt again.
“So, what happens is that they sell off any kobo that accrues to their investment, thus making it difficult for the market to grow,” he said.
Mr. Emmanuel Ikazoboh, NSE Interim Administrator, had last Monday said that investments in the critical infrastructure and continued focus on promoting macro-economic stability were expected to facilitate shift in the economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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