The National Co-ordinator of Independent Shareholders Association of Nigeria(ISAN),Adeniyi A. Adebisi has raised alarm over the capital market’s sudden boom and is requesting the nation’s economic managers to monitor the economy closely.
However, in a separate interview,another Shareholder Alhaja.Sarat Kudaisi said that her expectation was that the economy will be better this year,saying that the recent growth of the capital market shows that her expectations may come true.
Speaking at the crowded ISAN’s Annual New Year Party at Ampack Hall,Job-fele Way,Alausa,Ikeja Thursday,Adebisi said that “The capital market is a barometer of some sort.It mirrors the state of the economy of a country.A situation where the economy of Nigeria is throwing out poor financial indices and the capital market is showing signs of good health and growth is suspect and should not be.
“This type of sudden growth may be phantom and a precursor of another bubble that will bust.Government authorities should watch.”He said.
It should be recalled that the CEO of the Nigerian Stock Exchange(NSE),Oscar Onyema was queried about the reasons why the capital market was experiencing spiraling growth and his answer was that the growth owes to Central Bank Of Nigeria(CBN) recent special window for foreign investors,as well as the rising price of oil in the international market etc.
He however accepted that much of the current activity in the market owes to institutional investors( foreign and local) and that the retail investors have not woken up to the opportunities available and he promised to make more efforts to enlarge the quotient of local retail investors on the floor of the exchange.
Praising the Founder of ISAN,Sir Sunny Nwosu for his exampulary accomplishments ,ISAN National Co-ordinator enjoined other shareholders to emulate his drive,even as he called public officials and regulators to be patriotic and selfless in their service to the nation.
He called on stockbrokers,registrars and financial advisers to be more proactive and take their integrity more seriously to checkmate the rising cases of fraud in the sector,adding that”Cases of frauds are becoming more worrisome and alarming.Assurances of our financial advisers are becoming more unreliable”
Therefore,he reminded them that the interest of investors-small and big-should be upper most in their minds .Not immediate interest of current revenue,stressing that governmental agencies and regulators should not un-duly focus on revenue generation but on good corporate governance in the overall interest of the economy.
ISAN Spokesman,Moses Igbrude in his comments told us that the annual event is used to rally their members and thank them for the good work and recharge them for the year ahead,maintaining that the association will continue its battle to better the lot of investors of the market.
He thanked the media for their support and urged them not to relent on their efforts to ensure that useful information is well circulated to the benefit of the capital market.