The importance of meaningful collaboration between capital market operators and the Asset Management Company of Nigeria has again been emphasised.

According to the market operators, such collaboration could impact positively on the market, thus improving performance indices.

Some operators who spoke about this in an interview with our correspondent noted that some of the challenges currently rocking the market could be addressed if operators were carried along in the scheme of things.

They noted that it was worrisome that the corporation had yet to meet to discuss with operators even after several months of its activities.

They said that AMCON, which was established over a year ago had not discussed with stockbrokers and market operators on procedures of how to repay the debts they owed the banks.

The Managing Director, DHTL Capital Management Limited, Mr. Tunde Adeyemi, said that the proper things should have been for AMCON to meet with brokers and operators early in the year to discuss on how the debts which they owed the banks would be repaid.

He said, “We had expected that by now, AMCON should have met with brokers undertake a verification of the loans owed by the brokers, and draw up a schedule on how the issue can be resolved amicably in the interest of all the parties involved.

“It is therefore surprising that about seven months after the handover of capital market operators’ debts to AMCON, the corporation has yet to meet with any stockbroking firm or market operator to discuss with them about how it intends to handle their debts and how they should go about the restructuring and repayment.”

According to Adeyemi, AMCON, at present, seems not to be relevant to the Nigerian economy, and would have only been beneficial if it had been set up in 2008, during the global financial crisis and decline in the Nigerian stock market.

“Why we called for AMCON to be set up in 2008 was because there was a serious problem in the capital market, people were offloading their shares at an alarming rate, thereby, leading to a decline in the market indices,” he said.

The National Coordinator, Independent Shareholders Association of Nigeria, Mr. Sunny Nwosu, had said last month that AMCON was not living up to its expectations.

He added that the organisation was not carrying stakeholders along in its activities, adding that it was important for there to be more transparency in its operations.

“All over the world what they do is to stabilise the market by giving major organisations money to support their business; this is a kind of sovereign market making; but here in Nigeria, the case is different,” he stated.

Source: Punch/Udeme Ekwere