Operators Predict Brighter Future For NSE

Some capital market operators have said that activities in the Nigerian Stock Exchange (NSE) in 2013 would be dominated by the banking, consumer goods, food/beverages, and building material stocks.

They told newsmen in Lagos that the market would continue on its recovery path in 2013 barring any unforeseen economic shocks.

The Managing Director, APT Securities and Funds Ltd., Malam Garba Kurfi,  said that the banking sector would lead activities in the year as a result of financial sector reforms.

Kurfi said that the reforms had impacted positively on the fortunes of the industry and investors made over 55 per cent returns in the sector in 2012. “We are still expecting it to do more because most of the banking stocks are still trading below their fair value and very liquid for both entry and exit of foreign investors,” he said.

Kurfi, however, called on market regulators to embark on aggressive investor education to increase local investor participation in the market which currently stands at 30 per cent.

The Managing Director, Compass Securities Ltd., Mr Emeka Madubuike, said that the construction sector and food/ beverages stocks would experience increased activity due to the country’s large population.

“The food/beverages, building materials and oil/gas sectors would do well because we are still a developing economy with large population,” Madubuike said.

He urged the Federal Government and market regulators to provide the right environment for investment purposes. Madubuike said that local investors needed to be educated on market investment options, exit arrangement and when and where to invest to avoid repeat of past experience.

The Managing Director, HJ Trust and Investment Ltd., Mr Harrison Owoh,  called for provision of more incentives by both government and market regulators to attract listing of more companies on the exchange.

“The Federal Government needs to list all its privatised companies in the power sector and oil/gas to increase the depth of the market,” he said.