Following the sustained bearish trend in the nation’s local bourse, Independent Shareholders Association of Nigeria (ISAN) has urged retail investors not to exit the stock market due to the expected future gains in the equities.
National coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu made this call at a press briefing yesterday where he announced the organisation’s forthcoming election and conference slated for Friday (today).
He said: “Retail investors may regret actions that will take place immediately after exiting, as price of equities can suddenly start moving up because of efficient management. And by the time they will want to come back, it will cost them more.
The capital market is a market where people with patience play.”
Nwosu whose tenure will expire today as ISAN national coordinator, said he will support his successor. Nwosu, who founded and established the ISAN, the shareholder advocacy group, said the shareholders’ association is making history as the first in Nigeria to have relinquished power from the founder to another person.
He noted that though with the recession, people might need quick money that may require them look into their equities, but having sold such equities at low price now, the possibility of repurchasing such shares at higher price is higher.
The capital market, he said is a very unique area that requires better understanding by the investors, as exiting from the market now is not advisable, rather it is now that investors have the opportunity to balance their stocks because of the prevailing low prices.
Nwosu said that regulators need to do more to court the confidence of local investors who always have the interest of the economy and the market at heart, and will always remain loyal, even when foreign investors have exited.
He said that as the forth-coming confab of ISAN is hinged on the state of the nation’s economy, it will also focus on the state of the capital market and how it is run and regulated. Speaking on the government supporting the market with special funds, he said that it is only the retail investors that need support and not the stockbrokers who had earlier been given debt forbearance.
On why there has been no fresh listing in the market, he said that with the exit of Coca cola from the Nigerian Stock Exchange (NSE), which his group resisted as well as high monetary sanctions on the quoted companies, companies may have been scared from listing because of the highly demanding post listing conditions.