Successful Polls: Financial Experts Optimistic Over Capital Market Stability

Financial experts yesterday expressed optimism that the nation’s capital market would experience increased activities with the successful conclusion of the 2015 general elections.
In separate interviews in Lagos that the peaceful conduct of the elections without post-election violence would increase investors’ confidence in the market.
The Managing Director, Union Standard Securities Limited, Mr. Sehinde Adenagbe, said that the market would witness influx of both local and foreign investors because of the peaceful conduct of the elections.
Adenagbe said that tension, anxiety, agitation and violence surrounding the general elections had been settled with the outcome of March 28 and April 11 polls.
He said that the market had started reacting positively to the outcome of the elections, noting that more investors would embrace the market.
“People will settle down now that the polls are over to strategise on how best to invest in the market for maximum return”, Adenagbe said.
He said that Nigerians were shocked by the peaceful conduct of the elections, contrary to predictions that the country would spilt in 2015 after the polls.
Adenagbe said that profit taking would be ruled out as investors would desire to take profit once in a while.
He, however, tasked the incoming government on the need to patronise the capital market for developmental projects instead of depending on money market instruments.
Adenagbe added that the president-elect should ensure listing of government owned agencies and privatised ones on the nation’s bourse to increase the market depth.
The managing director said that the incoming administration should diversify the country’s economy to increase sources of revenue, adding that the country should not be import dependent.
Adenagbe said that the Buhari-led administration should tackle corruption to curtail excesses of fraudulent politicians.
The Managing Director, GlobalView Consult & Investment Ltd., Mr. Olaleye Williams, said that the market would experience confidence boost when the economic management agenda of the new government would be released.
“More confidence boost will come to drive the markets forward even in the barefaced challenges when the economic management agenda of the new regime becomes clear”, Williams said.
He said that the market in the second quarter would ride on the optimism and positivity produced by the peaceful conclusion of the general elections.
Williams said that the earnings seasons would strengthen confidence in the market and enable it to sustain a measure of stability.
Reports say that a turnover of 3.51 billion shares worth N25.19 billion were traded by investors in 26,836 deals last week.
This was against the 2.63 billion shares valued N36.58 billion exchanged in 21,393 deals in the previous week.

The Financial Services Industry led the activity chart with three billion shares worth N18.26 billion traded in 16, 356 deals.
The Conglomerates sector followed with a turnover of 259.08 million shares valued at N1.12 billion achieved in 1,650 deals.
The third place was occupied by the Consumer Goods Industry with 89.84 million shares worth N3.103 billion in 3,768 deals.
The All-Share Index lost 798.1 points or 2.23 per cent to close at 34,930.02 points compared with 35,728.12 points posted in the preceding week due to profit taking.