Delay in Passage of Budget Bad for Capital Market –Operators

Operators in the Nigerian Stock Exchange (NSE) on Monday said that delay in the passage of the 2018 budget would negatively affect the capital market.

Some of them expressed optimism that the 2017 earnings anticipated by investors this week would boost activities on the Exchange.

They told the News Agency of Nigeria in Lagos that the market would close upbeat as more companies would declare positive results.

The Managing Director, APT Securities and Funds Ltd, Garba Kurfi, Lagos said there was the need for the National Assembly to pass the budget.

He added that the anticipated results to be released this week at the NSE would attract more foreign investors to the exchange.

Kurfi said that the nation’s positive economy indices and more foreign and institutional investors would boost the exchange liquidity and investors’ confidence.

He said “The delay in the passage and implementation of the 2018 Appropriation Bill is not good for the capital market and the economy in general.

Kurfi called on the National Assembly and the Executive to settle the budget impasse in the interest of the economy.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. said that traders and investors would take positions in dividend-paying stocks.

Omordion said that the market volatility and repositioning would continue, adding that profit-taking would reduce on the strength of expected payouts and earnings by blue chips.

He urged investors not to panic but sought for equities with intrinsic value and higher dividend anticipation.