The Chartered Institute of Stockbrokers, the Association of Stockbroking Houses of Nigeria and the Association of Issuing Houses of Nigeria want the Central Bank of Nigeria to create an intervention fund of N200bn to be accessed by the market makers to shore up the capital market.
This move, they said, would be a short-term measure to cushion the effects of plummeting stock prices on the Nigerian Stock Exchange. The three bodies made their common stance known in Lagos on Wednesday during a meeting on the state of the market.
The ASHON President, Mr. Emeka Madubuike, said each market maker should be availed of between N1bn and N10bn to stimulate the market. He said the Securities and Exchange Commission should also consider structuring accrued dividends to shore up the market, adding that in recognition of the importance of the capital market, the government should make a pronouncement on the state of the market as a form of comfort to the investing public.
Madubuike said, “The market operators are working closely to seek an audience with the government for further interaction on the state of the market. The government should support the market by buying and warehousing shares as it is done in advanced markets.