NSE: Stakeholders call for collaborative effort in addressing market challenges

Stakeholders of the Nigerian stock exchange have called for collaborative effort of all stakeholders toward attaining market developmental imitative expected to enhance the capital market in 2017.

A stockbroker at the recent annual briefing by the CEO of the NSE applauded the exchange objectives set up for 2017 financial year, adding that the targets were germane but what remains uncertain is whether the exchange would be pursuing the agenda solely or in collaboration with other stakeholders.
“In pursuing this advocacy, it would be done as a team, if stock exchange pursues these initiative alone, knowing that the benefit is for the whole market, the possibility of achieving very significant success would be limited”.
While urging that the 2017 market development initiative should be pursued as a team, the stock broker counseled that the stockbrokers would be taken along in the course of advocacy and tackling market growth programmes.
The broker urged the NSE to work towards accomplishing the objectives by identifying top priority areas for the 2017 and working towards attaining them with the stakeholders, after which other issues would be addressed having earlier tackled the first phase of priority areas.
The broker pointed that the proposed listing by the MTN on the NSE was not based on their love for the nation’s economy or the market, but purely for the challenges besetting the company in recent times.
According to the dealing member of the NSE, once the exchange identifies ten challenges confronting issuers and together with the dealing members address the issues from different fronts, greater progress would be recorded, irrespective of prevailing issuers’ sentiments.
Mr. Lekan Bello, also a stock broker said because of the challenges experienced by the market in 2016, some of the measures for market development in 2017 may face hitches because of collateral damage done to the nation’s economy in 2016.
He said that the low foreign direct investment recorded in 2016 and the ow penetration of the Nigerian market by foreign investors and Nigerians in the diaspora could be traceable to the uncertainty surrounding foreign exchange in the country, a situation he said still persists.
“When you have about three different exchange rates in the country, it will be difficult for foreign n investors to take their funds back, hence they don’t know the prevailing rate at any time”
 Uncertain if there is an agreement between the federal governments, the ministry of finance and the Nigerian Stock Exchange, Mr. Bello said that the government needs to be made to understand the need for unformed exchange rate for the economy and the market. “This will encourage the FDIs and they can plan”
He said that the target foreign investments for the 2017 financial year could be hampered by policy issues, hence foreign investor may bring in funds based on one exchange rate and while repatriating their investment proceeds, are subjected to another exchange rate.
Bello however advocated for urgent need to harmonize the foreign exchange rates “There is urgent need for sustained engagement between the NSE and other institutions that regulate the financial industry for a more conducive operating environment for local and foreign investors”.
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