A former President
of the Chartered Institute of Bankers of Nigeria, Okechukwu Unegbu, has urged
investors not to panic over the current bearish trend of the Nigerian Stock
Exchange.
Unegbu said in
Lagos that the lull was not a sign of crash of the capital market. He said that
the trend result from the new increment in Cash Reserve Requirement (CRR) for
public sector deposits.
The CBN in July
raised the CRR on public sector deposits, including deposits from the three
tiers of government, from 12 per cent to 50 per cent.
Some capital
market watchers believe that the increment will spur major investors to
redirect their fund from the capital to money market, where returns will be
higher. Unegbu advised that investors should take advantage of low price of
equities to increase their stakes.
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