The crash in the prices of equities on the Nigerian Stock Exchange has been described by shareholders as a huge discouragement to investors and prospective shareholders intending to invest in the capital market.Decrying the losses recorded at the stock market in the past months, shareholders, who spoke with our correspondent on Wednesday, said investors had lost confidence in the Exchange.The President, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, expressed doubts over the possible recovery of the market from the recurrent fall in indices."We have lost millions of naira in investments in the stock market. Are you talking about the amount lost in the recent nationalisation of the three banks or in the never ending fall that has characterised market activities since the banks were sold'" Okezie asked.He added, "A lot has been lost. But the ugly truth is that the market is not likely to improve soon, and whoever thinks the market will recover in the near future may be telling a lie."Okezie called on regulators of the Exchange to rise to the challenge posed by the vagaries in the market before its eventual collapse, stressing that the regulatory agencies had yet to record tangible progress towards actualising a robust stock market.He said, "If you consider how the market is faring, you will agree that it needs professionals with in-depth understanding of how to run a successful stock exchange. At present, its like there is no answer to the challenges facing the stock market."We have had instances of companies delisting from the stock exchange and with what is happening, the ordinary investor will not be encouraged to invest."The Managing Director and Chief Executive Officer, Atlass Portfolios Limited, Mr. Ubale Yahaya, also a shareholder in the Exchange, said that the monetary reforms undertaken by the Central Bank of Nigeria had impacted negatively on the market.According to him, the development has made both local and foreign investors to lose confidence in the market. "I dont see the market picking up this year. In fact, what we should look forward to now is for activities to gather momentum next year, when investors, among other things, would have been able to adjust to the high Monetary Policy Rate foisted on the financial sector by the Central Bank of Nigeria," he said.The President, Renaissance Shareholders Association, Mr. Olufemi Timothy, described the fall in equities as disheartening. He, however, explained that investments in stocks were mainly for long-term purposes."It is normal for investors to feel discouraged about how the market is faring. However, it is a known fact that investments in the capital market bring returns in the medium or long term," he said.
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