Mr. Abimbola Babalola, NGX’s Head of Trading and Products, has emphasized that investors should consult with professionals before investing in shares in the stock market.
He made this statement during the Nairametrics Industry Outlook webinar, titled “Banking Public Offers: Buy, Sell, or Hold,” which held on August 24, 2024.
According to him, seeking professional guidance before investing in a stock would assist investors comprehend the market risks and profits associated with buying shares.
‘’Investors that seek professional advice would be better informed that stocks move up and down because of market forces. And this will reduce the panic that comes from seeing stocks decline; which they naturally do”
Market Sentiment is not enough
He stated that investors should not hinge their decisions to invest in stocks or other financial assets on market sentiment alone.
‘’Professionals often look beyond the sentiments over a company, scanning for information about the company’s performance, which can be gotten from financial statements.’’
‘’The macroeconomics surrounding the company which the investor is willing to buy their stock matters, and only a professional will enlighten you about it.”
Other discussions
Moving on, he remarked that “the NGX has put the stock market into the hands of investors.”
He emphasized the importance of investors visiting the NGX website to learn more about the company’s performance and recent developments.
In his opinion, the digitalization of investments has helped to remove the barrier that previously stopped people from having access to stocks and the financial market in general. He emphasized the ease with which investors can access stock market information from the NGX website.
What to know
The webinar also featured discussions that analyzed the impact that the 2005 recapitalization program had on the development of Nigerian banks today.
- Talks about how financially strong Nigerian banks became after 2005’s policy held sway on the webinar, as the other speakers on the webinar expounded on how beneficial it has been.
- Also, there were discussions about how recapitalization has brought banks closer to investors in terms of making the process of owning more shares very easy.
- Talks about the long-term outlook of the banking sector after recapitalization also held sway on the webinar as the speakers weighed in on the long-term benefits that empowering banks with enough capital would have on the nation.
The webinar ended with the speakers attributing long-term success to the recapitalization process. Hence, investing in banking stock or any other security should be done with a long-term perspective.
