Poor regulation, others stall NGX full recovery 15 years after | The Guardian Nigeria News


Poor regulation, harsh economy and other perennial challenges bedeviling the capital market have continued to hurt retail investors’ participation in equities 15 years after the global financial meltdown even as the market continues to lose an average of N2 billion to the segment’s apathy daily.

The losses are calculated based on the sector’s contributions to daily market trading before the crisis and current percentage.

Already, operators are worried that the drop in retail investors’ activities, which had constituted a large chunk of the total transactions, would further depress the equities market. This is because retail investors dominated the equities market after the indigenisation exercise of the 1970s up till the year 2000, contributing almost 70 per cent to volume.

However, the upsurge in foreign portfolio investment from 2000 to 2007 watered down their contributions to about 40 per cent. Regrettably, the segment’s contribution to the equities market…

Source: Guardian Newspaper