Stakeholders in the Nigerian capital market have called on the Federal Government to expedite action on the expected forebearance (stimulus) package aimed at rejuvenating the market.

According to the stakeholders, the equities market of the Nigerian Stock Exchange, which has been recording consistent losses in the last three weeks, would only fully recover after the Federal Government would have unfolded the details of the forbearance package.

They said that the market would react positively to the Minister of Finance’s proposed forbearance, when the details become clearer.

The Finance minister, Mrs. Ngozi Okonjo-Iweala, said last week that the Federal Government would release a forbearance package to stockbrokers as part of measures to stimulate investor confidence.

However, the equities market is yet to react to the announcement as activities have continued on the downward trend as the market capitalisation of the listed equities lost N126bn or 1.8 per cent to close at N6.947tn down from N7.073tn recorded last Monday.

Similarly, the NSE All-Share Index fell by 1.8 per cent or 394.65 basis points from 22,180.02 points to 21,785.37 points.

Market operators added that the liquidity crisis in the market would persist until government showed understanding.

The Chief Executive Officer, APT Securities and Funds Limited, Malam Garba Kurfi, told the News Agency of Nigeria that the stakeholders were used to such statements that would not be backed with action.

He said the issue of forbearance package had dragged for long to the extend that investors were beginning to doubt the commitment of government towards the bailing out the market.

Kurfi said that the inability of the Federal Government to give details of the forbearance package had made operators to become nonchalant about it.

“We are used to such statements without action. Remember that the promise was made outside the country where it was difficult to ask questions on when and how it is going to be implemented,” Kurfi said.

The Chief Executive of Pac Securities Limited, Mr. Eugene Ezenwa, urged the government to deal with the issue of the forbearance package immediately in the interest of the market.

Ezenwa said that the market closed below operators’ expectation in May due to profit taking and lack of liquidity in the financial system.

The Managing Director of Trust Yield Securities Limited, Alhaji Rasheed Yussuf, however, described the forbearance pronouncement as a welcome development.

He said that the implementation would determine the direction of the market.

Yussuf said that the liquidity problem in the market would continue until the problem of brokers’ margin loans was settled.

Analysts have, however, urged investors to take advantage of the low prices of major equities in the capital market. According to them, such investors would likely make profit when the market picks up later in the year.

Source: Punch