Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,567,554 members, 5,939,331 topics. Date: Sunday, 25 October 2020 at 06:24 AM

Nigerian Capital Market Contributes 20% To GDP, Vulnerable To External Shocks—pr - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / Nigerian Capital Market Contributes 20% To GDP, Vulnerable To External Shocks—pr (135 Views)

Nigeria’s Capital Market Contributes Less Than 10% To GDP—SEC DG / Nigeria’s Tax Revenue To GDP Ratio Rises To 7% / Infographics: Nigerian Capital Importation Half Year 2017 Report (2) (3) (4)

(1) (Reply)

Nigerian Capital Market Contributes 20% To GDP, Vulnerable To External Shocks—pr by dipoolowoo: 5:34pm On Jul 12, 2018
By Dipo Olowookere

Nigeria’s first professor of capital markets, Mr Uche Uwaleke, has warned that the nation’s equities market was too vulnerable to external shocks.

According to him, this was so because of the small size of the market.

To limit the impact of an external shock on the local bourse, efforts must be made to expand it, he said.

The highly respected financial expert lamented that it was unfortunate that foreign portfolio controls larger percent of the Nigerian market when compared with domestic investors.

“Foreign investors are significant players in the equities market, often dictating the pace of market activity. This leaves the market vulnerable to external shocks.

“At another level, the private bond market is very small compared to that for the government,” he noted.

Prof Uwaleke said in general, the Nigerian capital market presently contributes less than 20 percent to the nation’s Gross Domestic Product (GDP).

“Market liquidity, as measured by trading volume and turnover, is comparatively low. The issuer base is not diversified. More specifically, industry composition in the stock market is concentrated in a few,” he said.

Business Post reports that in 2017, the Nigerian Stock Exchange (NSE) was among the top five performing markets in the world, clinching the third place after appreciating by over 40 percent.

This year, the market’s Year-to-Date (YtD) returns, as at the close of market today, stood at -2.66 percent.

https://www.businesspost.ng/2018/07/12/nigerian-capital-market-contributes-20-to-gdp-vulnerable-to-external-shocks-prof-uwaleke/

(1) (Reply)

Buy My Nigerian Adsense Account For Just #8k / Bet9ja Agent Bizness For Sale. / Is The Oil World In Panic Mode?

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2020 Oluwaseun Osewa. All rights reserved. See How To Advertise. 28
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.