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As the COVID-19 challenge shakes the globe to its very foundation, investors in the Nigerian capital market have been enjoined to adopt proactive measures to the problem the losses in stocks and other investments notwithstanding.
A Research Analyst with Investment One Financial Services Limited, Mr. Moses Ahmed, during a programme organised by the firm at the weekend in Lagos and titled, “Outlook for Q2 and Beyond,” to sensitise members of the public on the effects of the scourge on the local and global economies, implored stakeholders to maximise the opportunities presented by the current predicament.
Predicting an imminent drop in global demand for oil and attendant effects on production, Ahmed urged investors to focus on long-term investments “as this will guarantee better returns.”
Also speaking, the Group Head, Investor Relations and Research, Africa Practice, Oluwapelumi Joseph, traced the history of the drop in oil sales back to the trade war between Russia and Saudi Arabia and the outbreak of the novel Coronavirus, forseeing increase in inflation due to demand factors.
According to him, “the financial and real economy risks are inter-related.”
He harped on the timeline of the effects of the virus on the global financial market, adding that the crisis at hand presents huge opportunities for wise investments.
Joseph cited the agricultural and pharmaceutical industries, noting that they would be comparatively less vulnerable “but will still face challenges as demand wavers.”
The financial experts also predicted increased interest rate for foreign portfolio investors, placing more items on banks from accessing the official foreign exchange market.
They equally suggested devaluation of the currency to restore confidence in the market.
