By Amaka Ifeakandu
Lagos
The Nigerian Stock Exchange (NSE) has urged investors in the nation’s capital market to diversify their portfolios across different assets classes to mitigate risks. Chief Executive Officer of the NSE, Oscar Onyema who made this call in Lagos at workshop organised by the Capital Market Correspondents Association of Nigeria (CAMCAN) over the weekend said that there is opportunities in every segment of the market.
He said it” is important for investors to do the analysis, understand where those opportunities are but certainly there are opportunities, not only in the equity side but across the various asset classes,” stressing that diversification of the portfolio would go a long way to reduce risks. Expressing the need for investors to re-balance their portfolio, he said although Nigerians owned 75 per cent shares in the capital market and 25 per cent belong to foreigners, the 75 per cent of stocks traded at the Exchange came from foreign investors because they under take portfolio approach.
Onyema pointed out that most retail investors lost their investment equities in the past because individual investor was interested in stocks that were in vogue without making out time to analyse the risks involved in it.
He however said that NSE targeted at institutional investors because they represents retail investors and have direct interactive relationship with them.
The NSE boss said that the Exchange is not in a haste to build index target that would burst in future but to have a very deep and liquid market that will attract both local and international investors.
He however said that the Nigerian capital market and the business of the stock exchange would always be impacted by dynamic economic trends and investor demands. Explaining further, he said achieving success through growth that creates value will increase the Exchange’s ability to operate efficiently and profitably in the transient advantage economy that has unfolded in Nigeria and around the world.
“While there has been no respite in the macro economy and operating environment due to lingering oil price and foreign exchange pressures, our long-term outlook for the Exchange remains positive as listed companies continue to show resilience and our members have been repositioned to deliver superior value to investors.” He noted that Nigeria is not the only exchange affected by these global developments, adding that off all the 24 exchanges in Africa, 20 are experiencing a downturn.
Onyema stated that in spite of the current depreciation in prices of equities in the country, opportunities still exist for investors in stocks.
