Capital market analysts have advised investors on the prudence of investing in the Nigerian Stock Exchange now.

Specifically, the analysts said that it was advisable for investors with long-term portfolio objectives to take advantage of the current low prices of major stocks in the market.

According to the analysts, some stocks are still selling at ridiculously low prices, creating an opportunity for wise investors to cash in and make high returns.

Analysts from FSDH Securities Limited, in their report on Monday, noted that trading activities in the next few days would largely depend on the outcome of the Monetary Policy Committee meeting, this week.

They, however, said that with the marginal rally recorded in the market last week, it was important for investors to take advantage of the general low prices of major stocks in the market.

They said, “The outcome of the MPC meeting would affect the direction of trades in the market. We however, maintain that there are lots of opportunities in the market that investors can take advantage of in order to ride the rally in the market.

At the close of trading activities last week, the NSE’s All Share Index appreciated by 0.35 per cent to close the week at 20,892.66 points, compared with the previous week’s depreciation of 0.10 per cent. Thus, the year-to-date gain on the NSE ASI stood at 0.78 per cent.

Similarly, the market capitalisation of the listed equities rose to close the week at N6.56tn representing a gain of 0.36 per cent, compared with the loss of 0.10 per cent recorded the previous week.

The Chief Executive Officer of the NSE, Mr. Oscar Onyema, had predicted, last week, that the NSE ASI was likely to record appreciation at the end of 2012, as against the 17 per cent loss it recorded at the end of 2011.

He, therefore, advised investors that this was the best time to invest in the market, especially considering that most stocks were currently selling at their year-low prices.

He said that the NSE planned to focus on aggressive reactivation and revitalisation of the secondary bond market as well as undertake increased investors sensitisation and awareness programme on investing in the capital market.

Onyema said, “This year, we are going to be involved in various activities and reforms aimed at improving the market and attracting more investments, and there will be focused goals towards deepening the already existing products in the market.

“Although we have decided that we are not inaugurating any new product this year, we plan to develop the three major products we have in the market which include the equities, bonds and the Exchange Traded Fund.”

Source: Punch/Udeme Ekwere