CIS Boss, Others Predict Stock Market Rebound

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By Eromosele Abiodun

Stockbrokers in the Nigeria Capital Market have re-assured investors that the Nigerian Stock Exchange (NSE) has potential to generate strong return on investment (ROI) as the market is set for rebound.

Besides, they advised investors to take advantage of the current low prices of shares to increase their portfolios as many of the stocks are trading below their intrinsic values.

The President,  Chartered Institute of Stockbroker (CIS)  Mr. Oluwaseyi Abe explained that the coast was already clear for the investors to shore up their holdings as market has begun to rebound.

Abe noted that there is nothing unusual about the current state of the market as the market essentially mirrors the economy and it moves in phases.

“It is only normal for the market to swing upward and downward because that is what makes it a market. It is absolutely normal. In any case, the direction of the market at any given time is the reflection of the economy and it’s been known that the economy has not been doing well lately. So I feel it is even the best time to invest in the capital market because the economy is now on the steady path of rebound, “Abe said.

Corroborating him, CIS first Vice President, Mr. Dapo Adekoje assured investors that uncertainty, which characterised the investment climate would soon disappear completely.

According to him, the federal government’s policy on the economic direction is becoming clearer and the international community has so much respect for President Muhammadu Buhari who has been waging war against corruption in Nigeria.

Adekoje explained that the new policy of the Central Bank of Nigeria on the forex had been endorsed by the International Monetary Fund (IMF) and there are strong indications that the new development would enhance efficiency in the management of the exchange rate of the Naira with multiplier effect on the capital market.

 Also, Network Capital’s Managing Director and Chief Executive Officer, Mr. Ropo Dada noted that one of the main reasons why foreign investors were leaving was the controversial exchange rate of the Naira to convertible currencies but with the new development, the market has become the toast of foreign investors.