For the Nigerian capital market to rise from its cumulative loss of 17 per cent, last year, there is need for the bond secondary market to be revived, Managing Director, Lambeth Trust & Investment Company, Mr David Imafidon Adonri, has said.

He said the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) who are the two main bodies saddled with the growth and development of the market must ensure that stock market serves as a balanced investment outlet.

Adonri, who is one of the leading operators in the market made this disclosure in an interview with the Nigerian Tribune last Friday.

“The Exchange needs to be drawn to the fact that inactivity of its secondary market bond trading platform has diminished its capacity to serve as a balanced investment outlet. The revival of the bond secondary market is a major task that should engage the attention of both the NSE and SEC. The major factors that can propel profitability of equities are macroeconomic. When domestic fiscal and monetary policies consolidate to force down inflation and interest rates to single digits, reprieve will come the way of equities.”

The Chief Executive Officer of NSE, Mr Oscar Onyema, will today (Monday) meet with the market community to appraise the market performance in 2011 and make prognosis for 2012. The CEO is also expected to intimate stakeholders on further plans at repositioning the market for better performance. 

Continuing, Adonri said that, while the equities market declined by 17 per cent last year, investors are expected to recoup part of their losses this year when dividends are paid.

According to him, “To reduce volatility of the market, last year, NSE started the process of product diversification with introduction of derivatives. The Exchange is also in the process of introducing market making and securities lending to address the issues of cash and stocks liquidity.

While commending these efforts, attention of the Exchange needs to be drawn to the fact that inactivity of its secondary market bond trading platform has diminished its capacity to serve as a balanced investment outlet.”