Experts forecloses crash of Nigeria’s capital market

Addressing participants at a workshop organized by capital market correspondents in Ijebu Ode at the weekend, Biodun Adedipe, an Economist and financial analyst, as well Godwin Obaseki, chief executive of Afrinvest West Africa and a member of the Nigerian Stock Exchange assured that unlike in those other economies, Nigeria still has a lot of factors working in her favour.

One of such major factors, according to Adedipe, is that prices of stocks traded on the Nigerian Stock Exchange have not hit their equilibrium levels, judging by their Naira or US Dollar value, that make them cheap.

The returns on investment, which is incomparable to that anywhere else in the world, according to Adedipe, make the Nigerian market of interest to every discerning investor across the globe.

The highest priced stock on the NSE, he continues, would compare as penny stocks in other developed economies. In his words: "57 per cent growth (in the All-Share-Index) cannot be found anywhere in the world."

"If you look at the price of Guinness Nigeria and that of the parent company listed on the London Stock Exchange, it would become obvious here that Guinness Nigeria is under priced.

" That is why he believes, foreign portfolio managers and other investors, would seek investment outlets in Nigeria .

Other reasons that would help sustain the resilience of the nation’s economy he explained further, includes the economic reforms, which has now created tremendous opportunities for growth, development and returns.

Many of the companies listed on the NSE have endeavoured to connect with their operating environment, just as the governments at efforts at liberalization through public/private sector partnership is now beginning to attract investors to key development areas of the economy.

The market would remain vibrant, he explained further, because "stock market crashes do no lead to death, except for those who has no heart, that is why the wise investor does not bale out (because) that is the time to buy in. There is no fear of a crash. A crash does not