How to make money from Nigeria's falling market
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Posted by Felix Okoli on July 10, 2010 at 05:40:45:
Is Nigeria's stock market falling? Well, yes. Where have you been?
You are not quite late as most stock prices are still at rock-bottom low levels!
The prices once highly priced companies in Nigeria have come a bit too low and it appears that they may rise in the short term, since it appears more stable now after a huge fall.
Let's compare: the price of First bank Nigeria. It was once at N33 some 2 years ago but today, it is at N12.75 and it moderately on the rise again. Same thing with a bank like Fidelity bank which also sold out its i.p.o. at about N8 in 2007 but and later within that year rose to about N12.50 but now in 2010, the price also fell to about N1.5 and has now slightly moved up to a more stable N2.42, so these stocks are worth investing in, even for the short term.
The main problem now with the stock market is the issue of liquidity, not everyone would want to sell but buying it itself a problem since some set of new rules have been introduced which is somewhat slowing down its recovery. However, that is good for the market as it will have a more reasonable recovery which will actually be based on true market conditions.
Opportunity for Individual and foreign investors
Since, Nigerian banks and loan houses are no longer easily giving loans to stock speculators, it may appear that the market has slowed down since those were the financial bases of former market movers, there is a better opportunity for individuals based home and abroad and even foreign investors who have a source of fund that they would like to diversify, investing in Nigeria's stock market would be the best option.
Ask anyone who is experienced or even your stockbroker;
If you are salaried person or doing any small or large business, maybe in the past, the stock market was somewhat overpriced, if you really want to have a solid investment, I believe this is the best time since it is about to rise again.
The Nigerian stock market was among the fastest growing and most profitable in Africa and although, it has slowed down a bit, it is on the march again and even though it is third world and developing economy, it is growing real fast due to telecoms, oil, education e.t.c. and investing in its stock market would be a good long term investment for international companies looking to cash in on developing markets across the world. I know that if fund managers and international investors are looking for an economy and capital market in a developing country to diversify their investments in, Nigeria would be on the list.
If you are an individual investor or company, it's time you really start thinking fast about investing in the stock market because after the storm comes the sun.
Comments:
Is Nigeria's stock market falling? Well, yes. Where have you been?
You are not quite late as most stock prices are still at rock-bottom low levels!
The prices once highly priced companies in Nigeria have come a bit too low and it appears that they may rise in the short term, since it appears more stable now after a huge fall.
Let's compare: the price of First bank Nigeria. It was once at N33 some 2 years ago but today, it is at N12.75 and it moderately on the rise again. Same thing with a bank like Fidelity bank which also sold out its i.p.o. at about N8 in 2007 but and later within that year rose to about N12.50 but now in 2010, the price also fell to about N1.5 and has now slightly moved up to a more stable N2.42, so these stocks are worth investing in, even for the short term.
The main problem now with the stock market is the issue of liquidity, not everyone would want to sell but buying it itself a problem since some set of new rules have been introduced which is somewhat slowing down its recovery. However, that is good for the market as it will have a more reasonable recovery which will actually be based on true market conditions.
Opportunity for Individual and foreign investors
Since, Nigerian banks and loan houses are no longer easily giving loans to stock speculators, it may appear that the market has slowed down since those were the financial bases of former market movers, there is a better opportunity for individuals based home and abroad and even foreign investors who have a source of fund that they would like to diversify, investing in Nigeria's stock market would be the best option.
Ask anyone who is experienced or even your stockbroker;
Now is the right time to invest in Nigeria' capital market
If you are salaried person or doing any small or large business, maybe in the past, the stock market was somewhat overpriced, if you really want to have a solid investment, I believe this is the best time since it is about to rise again.
The Nigerian stock market was among the fastest growing and most profitable in Africa and although, it has slowed down a bit, it is on the march again and even though it is third world and developing economy, it is growing real fast due to telecoms, oil, education e.t.c. and investing in its stock market would be a good long term investment for international companies looking to cash in on developing markets across the world. I know that if fund managers and international investors are looking for an economy and capital market in a developing country to diversify their investments in, Nigeria would be on the list.
If you are an individual investor or company, it's time you really start thinking fast about investing in the stock market because after the storm comes the sun.
Comments: