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Q3: Profit taking, festive mood depresses stock market – Oteh

By on September 19, 2013
SEC DG, Aruma Oteh

SEC DG, Aruma Oteh

The Director General of the Securities and Exchange Commission, SEC, Ms Arunma Oteh, has given insight to the reasons for the downward trend in the stock market since the beginning of the third quarter of 2013.

According to Oteh, investors in the equities market usually leverage on the capital appreciation in stocks during this time of the year to take profit, just as some of the festive period which falls at this time of the third quarter, also drag down values.

The SEC DG, however, noted that the trend was a normal phenomenon during this period of the year.

In her views, “notwithstanding the drawbacks in the value of shares, the transactions in the market since the beginning of the year is a pointer to the fact that the reform measures taken in the market has continued to add value to its growth and development”.

Speaking on the performance of the Nigerian capital market in the last few months at a forum in Lagos, Oteh expressed her delight with the growth in the domestic bond market which comprises of the federal, state and corporate bonds.

The SEC boss said, “As an institution, we are delighted at the way the market evolved in the last year. We had a very exciting first half with the market hitting an all-time high of 40,000 indexes.

“It is important to note that despite the challenges that emerging markets all over the world have been faced with, the Nigerian market has been doing well”.

According to her, “Markets such as China, Indonesia, India and Brazil have struggled, but the Nigerian capital market remains one of the best all over the world. This gives a lot of credence to the reforms embarked upon by the regulators in the last three years”.

It will be recalled that the market which reached its all time high of 40 per cent growth on June 11, has since the beginning of third quarter of July been experiencing oscillation in transaction, thereby giving some concern to investors in the domestic market.