As we move towards the last quarter of the year, investors have been advised to be careful of the stocks they buy from the stock market. Speculations are that,there would be a further drop on stock prices as posed by festive period, and at that investors are advised to be cautious of their purchases.
Godwin Anono, President, Standard Shareholders Association stated that "The foreign investors are still looking at Nigeria, they don’t know which way Nigeria is going as the Federal Government intensifies its drive to recover ill-gotten money. This is a step in the right direction and I believe it will have an aeffect on the market.Investors are not sure of how the market would be in the fourth quarter. This is because Christmas is few month ahead and people will want to save for Christmas and to pay school-fees. So, I am not sure because this time around, the purchasing power of individuals in Nigeria is very low. So, nobody wants to buy shares, but this is the time that is good for somebody that has money somewhere to buy shares and make better returns in the future . For the last quarter of the year, I am not sure that the the market will pick up.Once the Federal Government government has put policy measure in place, then the market will start moving forward but for now, no way. The market cannot move when there are no policy direction for finance sector .Foreign investors who are scared before will now hold on to their money and watch Nigeria from a distance. It is when all these fundamentals are properly in place that foreign investors will start coming and then others will start moving on. Any company that wants to do a Rights Issue now or a public offer or private placement should beware."
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