Capital market stakeholders have bemoaned government economic policies, especially the recent decision by the Central Bank of Nigeria (CBN) to retain interest rate at 14 per cent, They said that the policy was disincentive to investment for both foreign and indigenous investors.

They argued that when interest rate is low, speculators move their funds from the money market instruments to the stock market to make a kill.

The same speculators, according to them, also move from the stock market to other asset classes, especially, fixed income securities when the interest rate is high.

Specifically, the Managing Director of Highcap Securities Limited, David Adonri explained that Nigeria is currently in recession because the fiscal authorities have failed to initiate policies that would boost the supply side of the economy.
This, according to him, is affecting the real sector, especially in the production of goods and services, which is having a multiplier effect on the stock market.

“If the supply side is not working, there would be scarcity which is adversely affecting the stock market. The circular in flow of money presently is affecting the equities market.”

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