Shareholders predict drop in stock market performance
Ahead of the last quarter of the year, investors have been advised to be careful of the stocks they buy from the stock market. Shareholders, who spoke with Investors Forum, said that there would be further drop on stock prices occasioned by festive period, just as they advised investors to be beware of their purchases.
Godwin Anono, President, Standard Shareholders Association: The foreign investors are still looking at Nigeria, they don’t know which way Nigeria is going as the Federal Government intensifies its drive to recover ill-gotten money. This is a step in the right direction and I believe it will have an effect on the market.
Investors is not sure of how the market would be in the fourth quarter whether it will pick up or not . This is because you know that it is Christmas time and people will want to save for Christmas and to pay school-fees. So, I am not sure because this time around, the purchasing power of individuals in Nigeria is very low. So, nobody wants to buy shares, but this is the time that is good for somebody that has money somewhere to buy shares and make better returns in the future . For the last quarter of the year, I am not sure that the the market will pick up.
Once the Federal Government government has put policy measure in place, then the market will start moving forward but for now, no way. The market cannot move when there are no policy direction for finance sector .Foreign investors who are scared before will now hold on to their money and watch Nigeria from a distance. It is when all these fundamentals are properly in place that foreign investors will start coming and then others will start moving on. Any company that wants to do a Rights Issue now or a public offer or private placement should beware.
Alhaji Gbadebo Olatokunbo:
The economy is going to have tough time but by the grace of God, things will stabilise in Nigeria. All economic analysts will fail in their predictions, text book economy won’t work this time around because Nigeria’s issue demand the local palace to solve it not text book economy.
International predictions won’t work, things will look as if the economy will almost crash, but at the end of the day, it will stabilise, that’s what I want to add The expectation of the people will be dashed, people will lose hope, but at the end of the day, we will then look at ourselves that how come we surpassed this.
Even all the economy analysts will rewrite their note because if things do not go the way it’s going now, we can never get it right. Ours is incomparable to all the other economies that we are comparing it with because things have really gone extremely bad. If there is another word to describe the state of the economy, I would have used it. I only read economics in the secondary school, for-instance,I am an Ijebu man and I’ve been practicing economics since my secondary days.
I have been reading all sorts of books, I can tell you our own case will not be like the text book stories. The only country we can link to our case is the case of China; before China emerged a strong nation, they closed their door for over 25 years not dealing with the outside world and nobody knew what was happening in China.
Our own 25 years may be two years; it may be less than that, we will convince the whole world, they will see us as mad people, they will predict, but their predictions will fail.
At the end of the day, we’ll come out strong. If I talk about the economy, it’s going to affect everything, capital market, name it, but if I say it now at the At the Annual General Meeting, AGM, shareholders will lash me, but they will live to witness it. Quote me, they will live to witness it.