Stakeholder lists conditions to curb downward trend on NSE

Chief Patrick Ezeagu, the Chairman of Association of Securities Dealing Houses of Nigeria (ASHON) has called on investors to adopt sound investment decisions as a solution to the current decline on the Nigerian Stock Exchange (NSE).

Recall that the Nigerian Stock Exchange recorded a downward decline of capital markets for the banking sector in the first seven months of the year.

Current reports show that market capitalization of banks has gone down by 18.18%, as accusing fingers continue to point back to the Government’s economic framework.

He blamed the current decline in the Stock Market on the government, saying it was due to the delay in the appointment of Ministers and the absence of a vibrant Economic Team in piloting the nation’s affairs.

To curb the current bearish trend on the Stock Exchange, Ezeagu called on investors to stop relying on speculators but seek sound investment decision before selling or buying.

“Those who are selling off their shares right now are speculators and not real investors. Every stock market needs speculators for liquidity but they can change investment decision in a second.”

According to his analysis of the market, he stated that the corporate earnings of various companies are yet to reflect on the movement of their share prices, even though they keep posting higher earnings and good returns.

Amidst all these conditions, Ezeagu has urged for calm in the sector and for investors to avoid panic selling, saying the global outlook of the market has strong potentials.

“Globally, the stock market gauges the mood of the economy like a barometer. Our market is not a local one. Foreign investors have significant stakes because their analysis has always convinced them that our market has the potential for strong Return on Investment (ROI).”

The continued panic selling of shares is definitely not unusual. It is practically a major reflection of the current economic trend and desire for investors to gain profit and increase high shareholder value.