By Dipo Olowookere
Acting Director-General of Nigeria’s Securities and Exchange Commission (SEC), Ms Mary Uduk, has disclosed that the current reaction of investors to the nation’s capital market to the forthcoming general elections next year is nothing to worry about.
Events lately in the political settings in the country ahead of the 2019 polls have left some market players, especially foreign portfolio investors, exiting the local stock market.
About two weeks ago, the political scene witnessed mass defections from both the ruling All Progressives Congress (APC) and the opposition Peoples Democratic Party (PDP).
Even the Senate President, Mr Bukola Saraki, left the APC to the PDP, leading to call for his resignation and invasion of the parliament by operatives of the Department of State Services (DSS).
Worried by this and other development, the market witnessed huge capital flights, resulting in massive selloffs of shares.
For 10 consecutive days, the stock market was heavily dominated by the bears and was only in the green zone last Friday when it went up by 1.87 percent.
But the SEC chief said the market reaction to the 2019 elections is nothing to worry about as it is a normal thing to expect.
While answering questions from newsmen on Thursday, August 9, 2018, in Lagos at the end of the quarterly Capital Market Committee (CMC) meeting, Ms Uduk said there is no measure the regulators can put in place to prevent the reaction.
However, she urged the media not to create panic in the market, warning that the reporting can be blown out of proportion.
“The market must react whether positively or negatively. Irrespective of measures we put in place, the market reacts to activities that happen in the system.
“In 2008, during the meltdown, the market reacted to the global situation.
“Therefore, you should be alarmed if something happens during the 2019 election and the market does not react, we should be worried.
“Irrespective of what we put in place, the market will react. I would rather enjoin gentlemen of the press to help us.
“The world is now a global village, anything we write here is blown out. I enjoin us to stay on facts, when we do that I am sure it will be fine.
“I therefore appeal to you especially since we are going into an election year to please help us,” Ms Uduk said.
Speaking on the proposed initial public offering by MTN Nigeria, the SEC boss said, “Let MTN first file [for listing on stock exchange] and the day they inform you they have filed, watch what the SEC will do.
“Not what is being bandied on the pages of newspapers, we will do our work to the best of our ability.
“I will make an exception and allow the press to come and monitor, that’s the seriousness with which we view everything that surrounds MTN and other filings.
“As we speak, as far as we know MTN is still a private company and until they convert to a public company and then file application with us, that is when the matter should be focused on us.”
