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.