The Nigerian stock exchange all share index has been moving southward for months, investors have been crying foul yet no respite,despite various policies being introduced by the regulatories authorities to arrest "Mr bear"in the market seem not to reverse the ugly bearish trend, or could it be the market is heading for crashing or the economy is heading for reccesion, because prolong bearish market always have the economy fundamentals(check the cause in the us market).
Let us examine the following facts and the possible consequencies.
*the market has lost over 3trn naira, which implies that 3trn has moved from capital market to unknown destination.can you ascertain where this huge fund might have gone to? or could it be that there is capital flight and if this money is the economy surely there would be increase the inflationary figure.
*the various kangaro policies been intoduced by market authories,would you say the policies are not needed or could it be that, the policies are irrelevant or not needed in this period.what of when the market is staging a come back don;t you think these policies may retard the market in the long run?.
*the introduction of market makers,as a matter of fact the industry that are have huge money in there coffer can be said to be banks.remember these banks are the instituitions that usually cause all these artificial prices, do you agree with me if you don't look at the market before recapitalisation.
the fear i am excersing now is that all these banks will meet up with all necceary requirement to operate as market makers and will even have more power to manipulate prices.
*what if the fund that left market refused to come back in full because foreign investors have withdrawn there money from the market,and the tendency of returning these funds into market is slim expecially when their market is attractive due to favourable policies.