By Peter Egwuatu
Mrs. Toyin Sanni, Group Chief Executive of Emerging Market Limited has urged investors to take position in undervalued securities in the bearish market, just as she blamed the bear run on equities market on the current political uncertainties ahead of next year’s general elections.
Speaking on yearning opportunities for investors, she assured that the “current market dynamics provide an opportunity for investors to take position in undervalued securities; even as investors must carefully identify securities with sustainable long term growth prospects.”
Key sectors that should be under investors watch in the months ahead, she believes, should include agriculture, oil and gas, technology, banking and healthcare.
To successfully navigate the financial markets during an election cycle, she urged investors to take a long-term position to equity investing, rather than trying to predict the market and end up with burnt fingers. She urged investors to conduct adequate due diligence in stock selection and avoid being pressured to exit, just as engaging the right professional advisers; and maintain a diversified portfolio, while taking individual risk tolerance level into consideration.
While presenting a paper titled at the 2018 edition of 2019 Traders and Investors Success Summit (TISS), organized by Investdata Consulting Limited, in Lagos, Sanni, noted that investors’ perception of a nation’s political leadership is a major factor that determines their level of confidence in the financial market.
Another very significant impact on the market, she continued, is the quality of opposition candidates; ahead of the performance of listed companies.
She alluded to the Presidential election cycle theory which states “that the financial markets exhibit weakening trends in the year before a presidential election.