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2016: Experts Link Stock Market Growth To Forex Stability

Some financial experts yesterday said that developments in the global oil market and foreign exchange policy would determine capital market’s performance in 2016.
They told the News Agency of Nigeria (NAN) in Lagos that the slide in the nation’s bourse would continue if the price of crude oil continued to plummet at the global market.
Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that oil price was critical to stock market growth in 2016.
Kurfi said that foreign exchange policy would be another determinant factor of the market’s direction, noting that government should pursue friendly monetary policies.
He said the current monetary policy should be adjusted by the Central Bank of Nigeria (CBN) to the current realities in the economy to achieve the desired growth and development.
Kurfi said that the apex bank should be mindful of Nigeria’s foreign exchange policy to be pursued in 2016 to avoid heating up the economy.
He said that the apex bank needed to reserve its planned closure of foreign exchange supply to Bureau de Change operators to avoid hike and scarcity of dollar in the country.
Kurfi said that the decision would scare foreign investors because many local and foreign investors patronised the parallel market.
On the 2016 proposed budget, he said that the critical thing was its implementation.
Kurfi said that the budget would reinforce economic activities if properly implemented, noting that government should diversify the economy to increase revenue generation.
Mr Harrison Owoh, the Managing Director, H J Trust & Investment Ltd., also said that the market would pick up with friendly economic policies.
“If the policies are bad, the capital market will continue to decline in 2016,” Owoh said.
He added that the government should provide a level playing field for the market to rebound in the coming year.
Owoh said that the slump in crude oil price affected stock market growth globally in 2015, adding that the trend would continue if there was no change. (NAN)

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