Investors in the Nigerian capital market have been advised to ensure that they re-align their investment plans in order to make good returns.

The advice was given by market analysts on the back of series of losses incurred by capital market investors in the last few years.

According to the analysts, oftentimes, investors lose huge amounts of money in the capital market because of the inability to properly align their investment portfolios.

Analysts from Meristem Nigeria Limited noted in a report that despite the low showing recorded in the NSE indices in the first quarter of this year, the positive outcome predicted for the market 2012 was still possible.

They added that it was important for investors, who were seeking value and profit in the market, to take advantage of the current state of the market and make wise investment decisions.

They said, “Despite the disappointing outing of the first quarter, we remain unshaken in our base case prognosis of the market closing the year at 13.52 per cent gains; we believe the market volatility trend will contract in the second quarter.

“The earnings releases so far suggest that fundamentals are still in favour of the market. More results are still expected over the coming two months and are expected to positively price the market; therefore, we expect value-seeking investors to take advantage of the under pricing of the Nigerian market to reap opportunities in this second quarter.”

The analysts noted that it was likely that the activities in the banking sector would drive increased trend in the market, adding that most banks were beginning to find their feet after the banking industry shake-up that occurred last year.

“We still expect banking stocks to be the major drivers of the market’s performance in this quarter, and despite the full year 2011 losses posted by a few banks like First City Monument Bank Plc and Diamond Bank Plc as well as United Bank of Africa’s earnings warning, we remain bullish on their intrinsic value potential in driving the market northward,” the analysts noted.

On their own part, analysts at Vetiva Capital Management Limited noted that it was likely that investors’ interest would be boosted by the release of more results by major companies quoted on the NSE.

They explained that the buying momentum recorded in the market in the early part of the second quarter was likely to continue into the end of the quarter, and extend throughout the year, adding that investors should, therefore, take position in the market.

“The nearing first quarter 2012 results and the awaiting results for the full year of 2011 are bound to sustain buying momentum in equities going into the week, especially among the financial services stocks,” they stated.

Source: Punch/Udeme Ekwere