As the spate of sell-offs continues to hit virtually all sectors of the Nigerian Stock Exchange (NSE), an investment expert and Chairman, Capital Bancorp Plc, Olutola Mobolurin, has advocated a complete review of strategy to boost investor confidence to re-position the Nigeria’s capital market
This was even as he called on the Federal Government to ensure that the country goes back to production and domestic investment so as to create jobs for the unemployed. He said that Nigeria must develop local capital formation institutions as well as savings to reduce the market’s dependence on foreign investors.
Speaking during the company’s 30th Annual General Meeting (AGM) in Lagos yesterday, Mobolurin said, that despite the tight financial and operating conditions, the firm’s group earnings increased by 29.1 per cent from N511.48 million in 2016 from N660.11 million in 2017, attributing it to its ethical behaviour, adaptation, innovation and professionalism.
He noted that the situation in the equities market was not surprising because the market has become too dependent on foreign investors to the extent that there are fears about who wins or lose in the 2019 general elections.
“Portfolio investors are looking for where more money can be made and if they come to a country where the economic output is low or sluggish, then they will take their money to a more bullish economy. If we had domestic investments and savings, this would have counteracted the foreign investors who are taking their profit away”
“There is need to build back confidence get people to invest in the market if we want the progress of the economy, this will help in formation of capital but Nigeria must develop local capital formation institutions otherwise we will continue to be at the mercy of foreign investors to drive the equities market”, he said.
Mobolurin thereafter said the firm will look to a redirection of more funds in search of higher yields, adding that the inspite of the boisterous nature of Nigerian politics, the company remains hopeful that Nigeria will emerge from the 2019 elections a more positive place to do business.
Echoing the chairman’s statement, Managing Director of the company, Aigboje Higo, said the downward trend in the equities market is expected to continue, adding that growth will continue to be the watchword of the company.
“W expect the downward trend to continue till the end of the year but growth will continue to be our watchword and we will continue to stand for what has been driving the company which is integrity, quality customer focus, innovation and professionalism”, he stated.