Chief Executive Officer (CEO) of Sterling Bank Plc, Mr Abubakar Suleiman, has identified lack of trust as the main problem affecting the growth and development of the Nigerian commodity market.
Goddy Egene
Equities investors have an opportunity to enter the market at good valuation as bears depressed prices further last week.
The market, which had gained N148 billion the previous week, shed N603 billion last week following sell pressure that dominated all trading sessions.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) fell 2.93 per cent to close at 38,324.07, while market closed lower at N19.975 trillion. Year-to-date the market has declined by 4.8 per cent.
Following the growth recorded two weeks ago, analysts at Cordros Securities had envisaged profit-taking last week. A development that led to the decline in prices of 41 stocks, compared to only 26 stocks that appreciated. And analysts said the lower prices offer investors a good opportunity to enter the market.
By Cynthia Alo
Chief Executive Officer (CEO) of Sterling Bank Plc, Mr Abubakar Suleiman, has identified lack of trust as the main problem affecting the growth and development of the Nigerian commodity market.
He disclosed this while delivering a welcome address on a webinar organised recently as part of measures to promote SABEX, a digital commodity exchange empowered by blockchain technology. The webinar held with the theme: AgroCommodities as a Viable Asset Class.
SABEX, which was designed to facilitate the exchange of agro commodities, operates through an ecosystem of buyers, financiers, warehouse operators and other players in the agro commodity trading business across Nigeria.
Breaking News | Sterling Bank s CEO, Others List Challenges Of Nigeria s Commodity Market thestreetjournal.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestreetjournal.org Daily Mail and Mail on Sunday newspapers.
SABEX, which was designed to facilitate the exchange of agro commodities, operates through an ecosystem of buyers, financiers, warehouse operators and other players in the agro commodity trading business across Nigeria. On SABEX, traders – typically farmers – can pledge their warehoused agricultural goods as collateral to access instant loans to facilitate their business growth.
Suleiman said the webinar had the objective of developing trust in the commodity market because there is currently no trust among players in the sub-sector, starting from farmers to micro players and exporters across the value chain.
He said there is a need to build trust in the payment, partnership, product, price and delivery elements of the agro commodity trading business. He added that “We need to financialise commodities to the point that they are similar to digital assets.”