Stock Market recovery excites Aganga

 

 

The Minister of Industry, Trade and Investment, Olusegun Aganga, has hailed the recovery  the Nigerian bourse has been recording since last year, saying it would  encourage  more companies to access funds for their operations and contribute to the growth of the economy.

The Nigerian stock market, which witnessed a downturn in 2008, remained bearish till 2012 when it started rebounding. That year the market rose by 35.4 per cent  and has  appreciated by about 20 per cent so far this year. Aganga said the rebound was commendable,  saying it a reflection of the efforts of the management of the Nigerian Stock Exchange (NSE) to reposition the exchange and make it investors’ and issuers’ choice.

The minister, who spoke at the NSE CEO Sectoral Dinner organised for entrepreneurs in industrial goods sector in Lagos last week, noted that  the Federal Government is aware of the challenges of  Nigerian manufacturers  are facing and was doing everything to address them.

“At a point investor confidence hit its lowest ebb due to huge losses recorded in the market. But today the story is different as confidence is returning fast. Last year, I understand the market rose by over 30 per cent and this year it has done  almost 20 per cent. This is the result of the various efforts and initiatives of the management of   stock exchange under the leadership of the Oscar Onyema, is putting in place,” he said.
According to Aganga, investors should take advantage of the rebound and invest in the Nigerian equities market while companies should access the market for cheaper funds.

“We understand that one of the challenges of   industries is high cost of funding. While  the government is making efforts to address that, the rebound of the stock market will also assist companies to have access to funding. The government is also putting in place an institute that will facilitate access to cheaper funding. The body will in the future raise funds from the capital market for on-lending to industries,” Aganga said.

Source: Thisdaylive