Finance
experts say the outlook for the Nigeria Stock Exchange is positive and
bright and that foreign investors are indicating interest, despite the
forthcoming elections.
The experts, who
spoke at a pre-investors conference, said foreign investors are looking
beyond the recent financial crisis. “The worst is over,” Akeem Oyewale,
CEO, Stanbic IBTC stockbrokers said yesterday. “We are optimistic about
the outlook of the market, and the future is bright,” Mr. Oyewale added.
“Every market in
the world goes through the boom and burst cycles and we are optimistic
that the burst cycle is currently being overcome. We are positive on
the outlook of the economy, though many areas are still undergoing
transition.
“We are developing
our market environment, which would have a positive effect on the
economy, going forward. Nigeria looks attractive in that context,” he
said.
Mr. Oyewale said
Stanbic IBTC, under the mentorship of Standard Bank, is organising a
conference that would bring investors, both local and foreign, to meet
with the management of companies.
“Already, we have
got confirmation by some investors all over the world, including highly
rated corporate institutions listed in Nigeria, Ghana, and the BRVM
have accepted invitations to be at the conference,” he further said.
According to him,
international investors that have confirmed attendance at the
conference themed ‘2011 Stanbic IBTC Investors’ Conference’, include
reputable sub-Saharan African-focused fund managers from the United
Kingdom, United States of America, South Africa, United Arab Emirates,
Kenya, and Singapore; while other participants include local
institutional investors comprising the leading PFAs, and top asset
management companies in Nigeria.
“The conference is
an avenue for them to meet with organisations here and interact with
them, know what they do, what their strategies are, how they have been
faring, how they were able to waddle out of the crisis, know their
prospects, and make informed decisions on where to invest in,” Mr.
Oyewale said.
The right environment
Yinka Sanni, deputy
CEO, Stanbic IBTC Bank, said under the right business environment,
investors will be attracted and that the conference will contribute
towards enriching the Nigerian capital market and support the drive to
enhance the activities and turnover of trades on the Nigerian bourse.
“The reality is
that Nigeria is part of the global village. Investors will come if
Nigeria provides the right environment that can yield reasonable and
competitive results, like power. At the moment, investors do think we
are making progress and they are also optimistic that the elections
would be successful.
“The conference is,
therefore, designed to provide these investors the opportunity to
harness the potentials that abound in excellent, well run and
highly-rated West African companies. The conference is structured to
allow one-on-one meetings between executive management of selected top
rated corporate firms in West Africa and the invited investors,” he
further said.
The programme,
which would last for four days, is expected to start next Monday.
Bismarck Rewane, the managing director, Financial Derivatives Company,
said the Nigeria capital market is currently undergoing reforms, which
would help increase investor confidence.
“There are ongoing
SEC reforms; there is the issue of the new DG of NSE, new listing
requirements, the increase in minimum required capitalisation of
stockbrokers by 250 per cent to N70 million from N20 million, among
others” he said.
He, however, added that uncertainty and the mixed performance by
listed companies are challenges still driving investors to the
sidelines.
