Fund Managers Association of Nigeria (FMAN), yesterday, said the implementation of the Treasury Single Account (TSA), high interest rate and foreign exchange (FX) control, would further weaken the nation’s capital market.
Michael Oyebola, FMAD president, said in an interview with the News agency of Nigeria in Lagos that the implementation of the TSA would also affect the capital market’s liquidity profile.
He said the market would continue to witness free falls due to the absence of clear economic directions and the bureaucracy to implement the policies.
Oyebola said FX challenges, high interest rate and the TSA would reduce system liquidity and affect portfolio investments, noting that these challenges would continue to reduce economic activities in the country and in turn negatively affect the profitability of companies and the prices of listed equities.
“All these for now reduce economic activities, impacting businesses negatively, which in turn reduces profitability, share price performance and the capital market,’’ Oyebola said.
Also speaking, Garba Kurfi, managing director, APT Securities and Funds Limited, said policy direction was very important in kick-starting the market.
Kurfi said the Federal Government should hasten the economic blueprint process and the appointment of the ministers in the interest of the market and the economy.
The economic blueprint and the appointment of ministers were long overdue, he said, stressing that the appointments must not exceed September, as promised.
The All-Share Index, which opened for the week at 30,705.62 lost 796.18 points or 2.59 percent on August 17, to close at 29,909.44.
Similarly, the market capitalisation dipped by N273 billion or 2.59 percent to close at N10.251 trillion, against the N10.524 trillion posted on Friday.