Stockbrokers, under the auspices of the association of securities dealing houses of Nigeria (ASHON) have called for reintroduction of the margin facility to help improve liquidity in the Nigerian capital market.
The chairman of ASHON, Chief Onyenwechukwu Ezeagu, stated that the Central Bank of Nigeria (CBN) should reintroduce the margin facility to help improve liquidity in the market.
According to him, it should, in conjunction with capital market operators, design effective guidelines that will de-risk the product to avert past experiences in margin lending in the market while margin terms and conditions should also be reviewed in line with the current realities.
“Government should patronise the capital market; the taste of the pudding is in the eating. This will spur others, including foreign investors to believe in the market. The government should urgently consider the proposal by the securities dealing community ably represented by the chartered institute of stockbrokers (CIS) and the association of securities dealing houses of Nigeria (ASHON) through the capital market master plan implementation committee (CAMMIC) on the rejuvenation of the market as part of the financial system review currently being worked on.”
He also said that the Nigerian capital market had capacity to survive the ongoing insecurity and macro-economic vagaries, militating against investment opportunities.
Ezeagu explained that the stock market had always exhibited resilience, saying, “the stock market could be said to have become resilient to upheavals in the economy but with the heightened insecurity, we want to believe that the market will survive, given that opinion leaders have continually advised the actors to jaw-jaw rather than war-war. We all need to tone down our words and actions for our country to avert catastrophe and ensure that our economy is sustained.”
Disclaimer: The Post Stockbrokers Call For Reintroduction Of Margin Facility To Improve Liquidity was first Published by Olushola Bello on leadership.ng.