Some financial analysts on Thursday urged capital market investors to take the advantage of the current low price of equities to increase their stocks in the market.
The analysts told the News Agency of Nigeria in Lagos that this period remained the ideal season for viable investors to use and increase their stocks.
The analysts spoke against the backdrop of the low patronage of stocks in the Nigerian Stock Exchange.
Charles Fakrogha, the Chief Executive Officer, Foresight Securities & Investment Ltd., said every stock investor must set an investment objective and adhere to it.
Fakrogha said: “The utmost objective of any investor is to buy stocks when the price is low, and sell when the price is high to make profits.
“But every stock investor should realise that whether the capital market goes up or down, an investor must make gain.
“By the outlook of capital market presently, investors should not panic.
“They should be more conscious of their investment pattern, develop good management governance and be more vibrant in participating in the market.”
Fakrogha said profit-taking would moderate capital market activities by December and January.
According to him, the price of equities fluctuates because of the renewed profit-taking by investors.
He said: “Though, the tempo of the market may still slowdown until February 2019 due to Christmas, end of year expenditure and payment of school fees.
“But after that period, the renewed profit-taking will gradually moderate and stabilise the equity prices for better market activities in 2019.”
Fakrogha expressed the optimism that the market would close higher in 2018 than what obtained in 2017.
Also, Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria, said stabilisation of other relevant sectors of the economy would go a long way to moderate and boost capital market activities.
Nwosu said activities in the political, banking and oil sectors to a great extent would affect the performance of the capital market.
He decried the wrong political ambitions in the country, saying that everybody focused on the forthcoming 2019 general elections.
According to him, politicians are looking for every available money to convert to cash in pursuance of their political ambitions, saying that the capital market remained the viable institution to source the cash.
He said: “The nation’s political situation, fall in oil prices and value of Naira have invariably contributed to the continuous decline of equities prices being experienced in the capital market.
“I believed that if the political, banking and oil sectors can be improved upon and stabilised, the capital market will also pick up.”