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More Foreign Investors To Take Positions In Stock Market – Analysts

By on January 11, 2013

Analysts that track the activity and fundamentals of the Nigerian Stock Exchange are of the opinion that more foreign investors will take positions in 2013.

Meristem Securities Analysts said investor confidence was returning due tot he strong performance and fundamentals of the market.

They said, “Last week, the market broke the consensus analyst estimate on market performance as the index crossed its physiological 29,000 points barrier to hits another year high. The duo of positive investor sentiments and company fundamentals have induced a bullish trend in the Nigerian equity market as the Index recorded over 35 per cent rise compared to the previous year.

“As sub-Saharan Africa markets continues to remain attractive destination to foreign portfolio managers, the Nigerian equities market presents an attractive with higher potential upsides than its peers at 36.4 per cent Year-to-Date stock market performance.

“Current rally witnessed in the equities market, in our opinion, was occasioned by the return of the foreign portfolio managers, who had long been on recess waiting for re-entry at support levels, and these investors took positions in some of the blue chips companies with attractive fundamentals.”

Also speaking on the development, President, Chartered Institute of Stockbrokers, Mr. Ariyo Olushekun,said foreign investors were already taking positions.

He said, “We are pleased to note that recovery has already commenced in our market and we are sure that this recovery would be sustained. Already, you would notice that we are having over 35 per cent year-to-date return in the market.

“All indications point to the fact that we are going to see even more growth in the months ahead, and we can see this from the way that foreign portfolio investors have been playing in the market in the last two years and taking advantage of the undervalued prices of major companies.”