Lagos- Mr Charles Fakrogha, the Chief Executive Officer, Foresight Securities & Investment Ltd, on Sunday urged investors to take advantage of the prevailing low prices of stocks to increase their stakes in the equity market.
Fakrogha told the News Agency of Nigeria (NAN) in Lagos that the period remained the ideal season for any viable investor to increase his or her stocks.
According to him, the persistent fall in prices of stocks is due to pressure to sell off stocks, uncertainty and profit taking usually associated with the end of the year.
Fakrogha said the market was under intense selling pressure because of the exit of foreign investors following the crash in the price of crude oil.
“By the outlook of the capital market presently, investors should not panic.
“Rather, they should seize the opportunity to grow and expand their stocks and wait for the bullish period to sell them off.
“Meanwhile, investors should be more conscious in their investment pattern, develop good management governance and be more vibrant in participating in the market within this period,” he said.
Fakrogha said that the bearish/downward market times would soon be over once market activities settle by 2015.
According to him, the equity market will not witness a persistent major downturn in the near future unless the oil price falls below 60 dollars per barrel.
He added: Although, the tempo of the market may still slowdown until Feb. 2015 due to Christmas, end of the year expenditure and payment of school fees.
“But after this period, the renewed profit taking will gradually moderate and stabilise the equity prices for better market activities in 2015.”
He also expressed the optimism that the market would close higher in 2014 compared to what was obtained in 2013, adding “the market fundamental is strong.’’ (NAN)