Market downturn: NSE seeks portfolio
diversification to mitigate risks
Market downturn: NSE seeks portfolio diversification to mitigate risks
Mr Oscar Onyema, the Chief Executive
Officer, the Nigerian Stock Exchange
(NSE), on Sunday advised investors to
diversify their portfolios across different
asset classes to mitigate risks.
Onyema gave the advice at a two-day
workshop organised by the Capital
Market Correspondents Association of
Nigeria (CAMCAN) in Lagos.
He said that developments in the market
made it imperative for investors to dig
deeper and understand the dynamics of
the market to mitigate risks.
Speaking on the workshop theme:
“Effective Reporting of Changes in the
Nigerian Capital Market,”, he said that
retail investors needed to be educated on
the reasons they should take portfolio
approach to investment.
“It is important 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,” he said.
The SEC chief executive officer said that
the Nigerian capital market and the
business of the stock exchange would
always be impacted by dynamic
economic trends and investor demands.
“Achieving success through growth that
creates value will increase the bourse’s
ability to operate efficiently and
profitably in the transient advantage
economy that has unfolded in Nigeria
and around the world.”
He said that the market, in the short-
term, would experience huge volatility,
but should not distract investors from
investing because of fundamental
elements inherent in listed companies
with a well regulated market structure.
Onyema said that a lot of energy had
been spent building the foundational
aspect of the market in terms of
transparency, orderliness, fairness,
disclosure and enforcement of rules and
regulations.
“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.
“It is important to note that we are not
the only exchange affected by these
global developments of all the 24
exchanges in Africa, 20 are experiencing
a downturn,” Onyema
He said that “opportunities still exist for
investors in stocks, in spite of the
current downturn in the capital market.”
“As we continue to work towards
achieving and sustaining this market, the
importance of financial journalists
cannot be over emphasised.
“”Financial journalists have the potential
to influence investors’ behaviour.
Negative reporting may result in
sensationalism and put additional
pressures that can force investors’
decisions negatively,” he said.
Earlier, Mr Goddy Egene, the CAMCAN
President, commended the regulators for
attending the workshop.
He said that many changes had taken
place in the market in the last few years
and there was need for cooperation of
stakeholders for the progress of the
market. (
Officer, the Nigerian Stock Exchange
(NSE), on Sunday advised investors to
diversify their portfolios across different
asset classes to mitigate risks.
Onyema gave the advice at a two-day
workshop organised by the Capital
Market Correspondents Association of
Nigeria (CAMCAN) in Lagos.
He said that developments in the market
made it imperative for investors to dig
deeper and understand the dynamics of
the market to mitigate risks.
Speaking on the workshop theme:
“Effective Reporting of Changes in the
Nigerian Capital Market,”, he said that
retail investors needed to be educated on
the reasons they should take portfolio
approach to investment.
“It is important 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,” he said.
The SEC chief executive officer said that
the Nigerian capital market and the
business of the stock exchange would
always be impacted by dynamic
economic trends and investor demands.
“Achieving success through growth that
creates value will increase the bourse’s
ability to operate efficiently and
profitably in the transient advantage
economy that has unfolded in Nigeria
and around the world.”
He said that the market, in the short-
term, would experience huge volatility,
but should not distract investors from
investing because of fundamental
elements inherent in listed companies
with a well regulated market structure.
Onyema said that a lot of energy had
been spent building the foundational
aspect of the market in terms of
transparency, orderliness, fairness,
disclosure and enforcement of rules and
regulations.
“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.
“It is important to note that we are not
the only exchange affected by these
global developments of all the 24
exchanges in Africa, 20 are experiencing
a downturn,” Onyema
He said that “opportunities still exist for
investors in stocks, in spite of the
current downturn in the capital market.”
“As we continue to work towards
achieving and sustaining this market, the
importance of financial journalists
cannot be over emphasised.
“”Financial journalists have the potential
to influence investors’ behaviour.
Negative reporting may result in
sensationalism and put additional
pressures that can force investors’
decisions negatively,” he said.
Earlier, Mr Goddy Egene, the CAMCAN
President, commended the regulators for
attending the workshop.
He said that many changes had taken
place in the market in the last few years
and there was need for cooperation of
stakeholders for the progress of the
market. (
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