By Peter Egwuatu

Chartered Institute of Stock brokers, CIS and other  stock market operators have called on local investors to take advantage of the new flexible exchange policy that will kick off  today  (Monday) as they foresee the price of stocks skyrocketing . They also reassure investors that the Nigerian Stock Exchange, NSE  has potential to generate strong Return On Investment (ROI) and the market is set for rebound very soon.

File photo: The floor of Stock exchange

Besides, they advised investors to take advantage of the current low prices of shares to increase their portfolios as many of the stocks are trading below their intrinsic values.

In its response on the effect of  new forex policy on stock market ,  the CIS President and Chairman of the Council, Mr. Oluwaseyi Abe explained that the coast was already clear for the investors to shore-up their holdings as market has begun to rebound.

Abe noted that there is nothing unusual about the current state of the market as the market essentially mirrors the economy and it moves in phases. “It is only normal for the market to swing upward and downward because that is what makes it a market.

It is absolutely normal. In any case, the direction of the market at any given time is the reflection of the economy and it’s been known that the economy has not been doing well lately. So I feel it is even the best time to invest in the capital market because the economy is now on the steady path of rebound”, Abe said.

Corroborating him, the Institute’s First Vice President, Mr Dapo Adekoje assured investors that uncertainty which characterized the investment climate would soon disappear completely. According to him, the Federal Government’s policy on the economic direction is becoming clearer and the international community has so much respect for President Mohammad Buhari who has been waging war against corruption in Nigeria.

Adekoje explained that the new policy of the Central Bank of Nigeria on the forex had been endorsed by the International Monetary Fund (IMF) and there are strong indications that the new development would enhance efficiency in the management of the exchange rate of the Naira with multiplier effect on the capital market.