Madubuike: Capital market groans under fuel scarcity, foreign exchange crisis

The-Nigerian-Stock-Exchange-NSE

The President, Association of Stockbroking Houses of Nigeria (ASHON) on Thursday said that the lingering power problems, foreign exchange, fuel crisis and others had taken their toll on the capital market.

Mr Emeka Madubuike, ASHON President, told the News Agency of Nigeria (NAN) in Lagos that the challenges were eroding investors’ confidence in the nation’s bourse.

Madubuike stated that government needed to bring out an economic blueprint to address the development, to avoid the collapse of the capital market.

The ASHON president said that the Federal Government needed to take a stance on critical issues like foreign exchange, subsidy and privatization, because of their link to national economic development.

According to Madubuike, the anti-corruption fight alone will not take the country far, unless there is a clear-cut policy direction.

He said that the challenges were eroding investors’ confidence in the nation’s bourse, because no investor would invest in a country with many economic uncertainties.

“Let there be a policy direction even if it is perceived to be a wrong policy; it’s better than not having a policy direction at all,” he said.

He also said that government needed to open up the economy for private investment, to enhance economic growth and development.

Madubuike said that the challenges had affected brokers, who were now finding it difficult to operate investors’ orders.

“The development is affecting the daily turnover of shares on the exchange because brokers are finding it difficult to operate on the floor of the NSE,” he added.