The increasing crisis of confidence in Nigeria’s stock market will further erode investors’ confidence, and slow down buying interests, an analyst at Investdata Consulting Limited, has said.

Specifically, the chief research officer, Investdata, Ambrose Omodion, said there is already a panicky mode, as investors watch developments in the market.

“The listing by way of introduction of MTN Nigeria on the exchange, on which the Economic & Financial Crimes Commission (EFCC), is currently beaming its searchlight on, the court-ordered reinstatement of Mounir Gwarzo, the suspended director-general of the Securities and Exchange Commission (SEC), all add to the tension.

Also, the recent removal of Jubril Adewale Tinubu, and Omamofe Boyo, as group chief executive, and Deputy of Oando Plc, respectively, owing to alleged infraction of securities regulation has implications on investors’ confidence and would impact negatively on the market.

“Oando’s decision to seek court protection will restrain the implementation of the SEC’s order, and the appointment of Mutiu Sunmonu, as head of the Interim Management Committee without doubts, further dampened investors’ confidence.”

Recall that the All-share index plunged by 0.17 per cent following losses recorded in medium and large capitalised stocks at the close of transactions on Thursday, May 30, 2019, the day Industrial Court ordered the reinstatement of Gwarzo.

Omodion argued that the volatility will remain in the absence of any catalyst that will impact positively on the market, and stimulate investors’ thirst for equity.

“However, we would like to reiterate our advice that investors should go for equity with intrinsic value. We advise investors to allow numbers to guide their decisions, while repositioning in any stock, especially now that stock prices remain low in the midst of mixed company numbers, weak economic and market fundamentals.”

You may be interested

Arokodare: Genk Can Win Belgian Pro League Title
Sports
1 views
Sports
1 views

Arokodare: Genk Can Win Belgian Pro League Title

Webby - November 4, 2024

Tolu Arokodare is optimistic KRC Genk can win the Belgian Pro League title this season, reports Completesports.com.The Smurfs have established…

Man City Suffer Double Injury Setbacks
Sports
2 views
Sports
2 views

Man City Suffer Double Injury Setbacks

Webby - November 2, 2024

Manchester City manager Pep Guardiola has provided an update on the fitness of John Stones and Ruben Dias following Saturday’s…

Former Flying Eagles Star Escapes Major Injury In Belgium
Sports
Sports

Former Flying Eagles Star Escapes Major Injury In Belgium

Webby - November 2, 2024

Nigeria winger Yira Sor is expected to return to action after the international break, reports Completesports.com.Sor sustained an injury in…

Leave a Comment

Your email address will not be published.