Capital market operators seek downward review of interest rates

Some capital market operators on Tuesday called for downward review of the money market interest rate to boost investment at the nation’s capital market.

They said in Lagos that high yield of money market instruments were discouraging investors from investing in the capital market.

Mr Bayo Adeleke, National Secretary, Independent Shareholders Association of Nigeria (ISAN), said that investors were patronising long-term investment windows due to high yields offered by treasury bills (TBs) and bonds.

Adeleke said that the interest offered by money market instruments were discouraging investors from staking their money in the capital market.

He said that banks invest more on TBs and bonds due to high interest rather than lending to the real sector or investing in the capital market.

Adeleke said that developments in the economy had called for a shift in the nation’s macroeconomic management for development.

Mr Emeka Madubuike, Managing Director, Compass Securities Ltd., said the market would continue to experience fluctuations unless the incumbent government releases its economic blue print.

Madubuike said the Central Bank of Nigeria (CBN) should adopt macroeconomic measures that would boost economic activities.

He, however, called on investors to take advantage of the current low price of equities and increase their stake in the market.

“Prices are low and very good for new investors to come in and increase their stake in the market,” Madubuike said.

Meanwhile, the All-Share Index appreciated on Monday by 1261.44 points or 4.18 per cent to close at 31,441.71 compared with 30,180.27 posted in the corresponding period.