Some
market operators at the Nigerian Stock Exchange (NSE) have criticised
the recent proposed extension of trading period by another two hours.
Emmanuel
Ikazoboh, interim administrator of the NSE, announced last week that he
will increase trading activities by another two hours within the next
two months. The move will take trading hours to seven. The NSE had last
December extended the trading hours from 9.30 am to 2.30 pm, against
the former 9.30 to 12.30 pm.
Mr.
Ikazoboh said the previous extension was done to give foreign investors
opportunity to participate in the market, adding that another extension
would further attract more foreign participation in the market.
“Within
the next one month or two, I am going to increase the trading hours
from 9:30 am to 4:30pm. This is to increase volumes and allow American
investors to trade in our market,” he said.
However,
Ola Yussuff, chairman of the Association of Stockbroking Houses of
Nigeria, said that the NSE should direct its efforts at building up the
base of local investors by “encouraging local investors to come back
into the market.”
“If
foreign investors are coming to the market, I think that is a welcome
sign. But our own position is that the NSE should encourage local
investors to also come to the market. As things are now, local
investors’ participation in the market is less than ten per cent
whereas in other jurisdictions, like in the United Kingdom and America,
you have 70 to 80 per cent local participation.
“Having
foreign investors is not bad, but it shouldn’t be at the expense of
local investors. If we have our way, we would direct more energy on
getting the local investors,” Mr. Yussuff said.
“Foreign
investors will only come here when there is something to be gained. As
soon as there is any slightest problem in our economy, they are out.
This makes the volatility of the market high.
“Therefore,
it is the local investors of every country that keeps its market alive
so that when foreign investors want to go, it doesn’t affect the market
negatively,” he added.
David
Amaechi, an executive member of the Shareholders Association of
Nigeria, said the planned trading extension may be a setback.
“There
is still fear that investors’ confidence is yet to be guarded jealously
in the market. It is these same foreign investors who pulled out their
funds, leaving our market to crash. More attention should be given to
us who plan to stay longer in the market,” Mr. Amaechi said.
Workers’welfare
Asked
if the NSE is considering the welfare of its staff in the proposed
plan, Wole Tokede, the Exchange’s spokesperson, said, “Since no staff
of the Exchange is complaining about the development, how the
(proposed) trading extension affects the staff should not be anybody’s
concern.”
However, Mr. Tokede said, “The management of the Exchange will not
create any policy that will affect the health of its workers. I also
believe that there is no sacrifice too much for the NSE staff to pay in
order to make the market progress.”
