Some capital market operators on Thursday in Lagos expressed optimism that the market would bounce back in the near future.
They urged investors to take advantage of the fall in equities prices and increase their stake in the market.
The operators said that the current downward trend in the market would soon vanish with socio-economic stability.
Mr Oluwole Awe, the Managing Director, Investment One Stockbroking International Ltd., stressed the need for investors to embrace the opportunity and increase their holdings.
Awe said the best time to invest was now because there was so much value inherent in the market place, in spite of the downward trend.
“The market is down now but there is so much value in the market because share prices are trading below their intrinsic value.
“If you are going to invest, this is the best time to invest and retail investors should take position and increase their stake in the market,’’ Awe said.
He said that it had been proven over the years that investment in the capital market over a period of time out-played other returns in other markets.
Awe said that investors who bought stocks at higher prices should use the opportunity to minimise their loss in the market.
“Though the market is low, this is an opportunity to buy, especially for those who bought at higher prices to reduce the loss incurred.”
The managing director stated that the market fundamentals were still strong, noting that issues in the socio-political economy of the country affecting the market “is a phase that will soon pass’’.
Also speaking, Mr Wole Abegunde of Meristem Securities Ltd., said that investors with long-term funds should take advantage of the market apathy and increase their stake.
Abegunde said the market would experience a turnaround in the near future because of strong fundamentals.
“At the moment, everybody is afraid, stocks are greatly undervalued and this is the time to come to the market to buy shares.’’
Abegunde said that investors should not wait till when the market experienced rally to increase their stake because they would “bite their fingers’’.
The All-Share Index between June 1 and November 18 had lost 5,825.21 points or 17.11 percent to close at 28, 219. 44, compared to 34,044.65 posted on June 1.
Also, the market capitalisation within the period lost N1.87 trillion to close trading on November 18 at N9.700 trillion as against N11.568 trillion achieved on June 1. (NAN)