Notwithstandingthe reforms and measures put in place to turnaround the fortunes of the capital market, stakeholders have implored the government to bailout the equities market to ensure its prompt return as investors delight.It would be recalled that the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NSE) in collaboration with the Central Bank of Nigeria (CBN) had embarked on major reforms to jump start the stock market after the global financial contraption which grossly affected emerging economies, but had met with little success.Besides, the present injection of funds as a bailout in the financial industry by the apex market body had started to yield results with most banks in their audited 2010 financials posting a healthy balance sheet devoid of non-performing loans.The financial industry and the stock market were worst hit during the global financial crisis wherein the toxic debt for banks stood at over N2.1 trillion, even as the stock market had its investment value depleted by over 70 per cent.Providing a leeway out of the present situation in the equities market last Friday, stakeholders posited that government should provide should that would enable the market reduce the glut of shares already in public domain.The stakeholders, comprising operators and leading shareholders, agued that for the market to return to stability the government must as matter of urgency inject fund into the market just like what was obtained in the textile, aviation and banking industry.They argued that this would restore and sustain investors confidence especially the local investors who are already showing apathy in the market.Speaking on the issue, a senior Stock broker with Crane Securities Limited, Mr Leke Omotosho, explained that there is liquidity squeeze in the market, which has made it difficult for the market to stabilise.He added that for the market to recover from losses incurred during the unprecedented lull in the stock market, government must provide fresh fund as a bailout for the market. We have tried everything within our powers and the market is stubbornly holding on. There is need for government to come and bail out the market. Government did same in the aviation and textile industry, Central Bank of Nigeria (CBN) did same with the banks, why cant they bail out the market which is the engine room of the economy.They should bring money to mop up the excess that are in circulation. That is the only thing that can help this market to come up again. CBN cleaned up banks balance sheets, took away the excess shares they bought through margin loans and give them back the monetary equivalence. What about the stock market, cant same be done in the stock marketThe National Cordinator, Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, pointed out that what is imperative in the stock market presently is to put strategies in place that will boost the confidence of local investors to stake more fund in the market, noting that this could only be achieved through injection of fresh capital into the market.Okezie, who noted that the market had recorded an unprecedented lull, attributed the downturn in the market to inability of both the Exchange and its regulator to tackle the relevant issues affecting the market.Despite improved corporate earnings, the market has not picked up because investors have lost confidence in the market and until something is done to restore this confidence, the market would remain unstable, he said.In his comment, the Chief Executive Officer, Lamberth Securities Limited, Mr David Imafidon explained that there was need to inject fresh fund into the market since all efforts put in place to strengthen the market had proved abortive.He explained that the function of the primary segment of the market was to provide long term capital whether in form of equity or debt to finance acquisition of assets, noting that if the market is not revived, it cannot render this service to the economy.
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