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Some operators at
the Nigerian Stock Exchange (NSE) have expressed optimism that the
nation’s capital market will perform better this year than last year
because more money is expected to be in circulation during the year.

Tunde
Oladapo-Dixon, chief executive officer, StockPicks Consulting, a stock
broking firm, said the NSE should witness a “fair market in 2011
because the year will be a consolidating year that is higher than the
consolidation recorded last year.” Mr Oladapo-Dixon said, “If you look
at 2009 and 2010, a lot of policies, which have not failed, were made
to mitigate the challenges in the market. The monotony of the banking
industry in the market was diluted when Dangote Cement was listed. The
building materials now take a better percentage in the market in terms
of capitalisation.” “We’ll see a better market in 2011 , the banks can
no longer run the market down again. And with all the policies still in
place and the Asset Management Corporation of Nigeria (AMCON) coming to
play in the first quarter of the year, the market will fare better,” he
said.

He added that with
AMCON kicking off, the banks will do their business as usual and that
will lead to more money in circulation. “And when money is in
circulation, what is expected is that there will be a lot of trading in
the market. Although the market will still oscillate due to the past
feelings that investors have about the system, but am still very
optimistic that the market will be better in 2011 but not to the levels
recorded during the boom era,” he said.

Strengthening regulations

Albert Edun, an
executive member of the Nigerian Shareholders Solidarity Association,
said what is expected in 2011 is the enforcement of the guidelines and
regulations by the Securities and Exchange Commission (SEC).

Mr Edun said,
“There were some improvements in the market towards the end of last
year and such can be only be sustained if the SEC appoints a credible
head at the Exchange.” Bola Oke, a finance analyst at WealthZone
Company, an investment management firm, said the fact that the year is
an election year, it is expected that “more money will be in
circulation and some of the funds should flow to the capital market for
investment.”

Meanwhile, the NSE
closed the year on positive sentiments, ending the last trading week
with aggregate score of 0.33 per cent gain, while month-to-date and
year-to-date performance stood at a 0.34 per cent decline and a 18.87
per cent increase respectively for the year 2010.

The market
capitalisation, during the last trading week, appreciated by N26.13
billion to close the year at N7.91 trillion as against appreciation of
N78.23billion recorded in the previous week to close at N7.88 trillion.