20th September, 2011
The Chief Executive Officer (CEO) of Pac Securities, Mr. Eugene Ezenwa, on Monday said that the banking reforms had impacted negatively on the capital market.
Ezenwa told the News Agency of Nigeria (NAN) in Lagos that the recent nationalisation of three banks particularly affected the market negatively.
He said that equity investors were now adopting a wait and see attitude because they were sceptical about returns on their investments.
Ezenwa said that investors were very cautious in view of the September 30 deadline of the Central Bank of Nigeria (CBN) for banks to recapitalise.
He said that investors were afraid that the other rescued banks might be nationalised if shareholders failed to inject new funds into them.
According to him, nationalisation of Afribank, Spring Bank and BankPHB before the end of the deadline sent wrong signals to the investing public since many of them lost huge sums.
He said that market trends showed that investors were only interested in some particular stocks in the banking sector.
The stockbroker said that investors’ interest in the stocks of four banks was responsible for the high volume of the banks’ shares traded during the week ended September 16.
He said that trading in the shares of the four banks accounted for 253.43 million or 56.4 percent of turnover in the banking sector during the week.