, as they task the government to adopt an economic policy that would urgently respond to the macro challenges currently rocking the domestic economy.
They argued that the preference for the money market and debt instrument arises from the fact that returns on such facilities, which are loaned to government or corporate bodies, are guaranteed with high yields for the fixed period of their tenure, unlike stocks which are exposed to the vagaries of market forces as they are traded daily.
The key performance indicator of the Nigerian Stock Exchange , the All-Share Index , also dropped 7.50 per cent to close at 27,718.26 on July 31, from 29,966.87 points at which it opened trading for the month. He linked investors’ appetite for money market instruments over equities to low liquidity, and the prevailing confidence crisis arising from political risk and persistent insecurity in the country, thereby worsening Nigeria’s already unfriendly business environment.
By the time the equities market recovers, all these funds will find their way back to the stock market He added that high-interest rate, which is already taking money away from the capital market, will ultimately depress investors’ appetite for stocks.
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Source: GuardianNigeria - 🏆 1. / 94 Read more »
Source: GuardianNigeria - 🏆 1. / 94 Read more »