Stockbrokers on the floor of the Nigerian Stock Exchange (NSE) have advised investors in the capital market to look at long term investments instead of short term in view of the current market situation.

The stockbrokers who disclosed this in an interview also encouraged investors to take advantage of current low prices to increase their holding in their market.

The market operators who maintained that market recovery was uncertain, however urged investors to mind where they invest their money in the capital market.

They also encourage investors to get good brokers who will appropriately advise them before investing into any company for safety reasons.

Speaking on the issue, a stockbrokers, Mr David Imafidon Adonri of Lambeth Trust and Investment Company Limited pointed out that the average PE ratio has gone back to its normal level below 15 noting that the capital market witnessed PE ratios moving beyond 15’s, 20’s, 30’s, and 50’s’ during the bubble period.

Adonri called on investors to be at alert always, especially when the market moves in a suspicious way, to avoid biting their fingers. 

Another stockbroker who spoke with The Tide on the issue, Mr Samson Amedu, the Managing Director/ Chief Executive Officer of Alangrange Securities Limited, explained that most forecasts were neither here nor there. Amedu pointed out that with the economic forecast by the international monetary fund and the World Bank “we should not look at any recovery now but may be in the later part of 2010 or 2011.”