Some capital market operators on Tuesday called for downward review of the money market interest rate to boost investment at the nation’s capital market.

They told the News Agency of Nigeria (NAN) in Lagos that high yield of money market instruments were discouraging investors from investing in the capital market.

National Secretary, Independent Shareholders Association of Nigeria (ISAN), Mr. Bayo Adeleke said that investors were patronising long-term investment windows due to high yields offered by treasury bills (TBs) and bonds.

Adeleke said that the interest offered by money market instruments were discouraging investors from staking their money in the capital market.

He said that banks invest more on TBs and bonds due to high interest rather than lending to the real sector or investing in the capital market.

Adeleke said that developments in the economy had called for a shift in the nation’s macroeconomic management for development.

Managing Director, Compass Securities Ltd., Mr. Emeka Madubuike said the market would continue to experience fluctuations unless the incumbent government releases its economic blue print.

Madubuike said the Central Bank of Nigeria (CBN) should adopt macroeconomic measures that would boost economic activities.

He, however, called on investors to take advantage of the current low price of equities and increase their stake in the market.

“Prices are low and very good for new investors to come in and increase their stake in the market.”

(NAN)

•Photo shows NSE Trading Floor