CIS optimistic on market rebound
The Chartered Institute of Stockbrokers (CIS) has expressed optimism that the stock market would witness some reasonable degree of stability, especially with the formation of new ministers, urging both individuals and institutional investors to leverage the current low share prices and beef up their portfolios.
The acting president of the institute, Oluwaseyi Abe who described the market as a barometer that measures the Nigerian economy, assured investors that the economy would pick up soon as indices of prior uncertainties were addressed, especially, with the appointment of the new ministers.
He pointed out that Chief Executive Officers of quoted companies are working round the clock to ensure shareholder value, adding that due to the lull in the economy and the need to boost disposable income and meet other exigencies, many investors had dumped shares thus inducing bearish trading.
But he maintained that market fundamentals remained strong and share prices of many blue chip companies were trading below their intrinsic values, while urging investors to take advantage of the cheap prices to increase their stakes in the quoted companies .
“New Ministers have been sworn in, securities issues corruption are being addressed daily,the management of the Naira exchange rate is being looked into as well while the current administration would hopefully utilize the market to fund the infrastructural gap in the economy in the wake of dwindling revenue from crude oil.”
Abe also said that the innovative efforts of the Nigerian Stock Exchange and Securities and Exchange Commission combined with the awareness creation by the CIS would ultimately strengthen the on-going globalization of the Exchange.
On the recent Stockbrokers’ Conference , Abe said the main target was entrepreneurs and the Conference was very successful in both the form and content. He stated that the Exchange had become a major platform for entrepreneurs as the market possesses all parameters that can attract an entrepreneur.
“The Conference was well attended and the presentations were not only robust but well discussed. The communique would be out soon and the process of implemting the collective decision would be fast tracked as many entrepreneurs would soon approach the market for investment opportunities “, he said.
Speaking on the institute’s Diploma Programme in Securities and Investment, Abe explained that it was a strategic way of not only attracting young entrepreneurs for training but a veritable platform for membership drive.
He added that the CIS had put in place series of activities aimed at increasing membership.
According to him, activities such as customized presentations in both secondary schools and tertiary institutions as well as churches and mosques among others were aimed at reinforcing investor confidence in the market.
He urged the federal and state governments to take advantage of the capital market to finance the economy.
Meanwhile, the institute had signed a Memorandum of Understanding with no fewer than ten organizations to mobilize youths for the institute’s Diploma Programme in Securities and Investment .
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