Insufficient data hindering investment in quoted companies
Investment and capital market experts have said the dearth of data in the capital market is hindering investment in quoted companies.
These experts spoke at the Chartered Institute of Stockbrokers Executive Conversion programme.
An investment analyst/ Chief Executive Officer, Ademola Omolehinwa and Company, Mr Ade Omolehinwa, said there was a need for stockbrokers to deepen their knowledge of data analysis to enable investors to identify major risk factors in each quoted company.
He said one of the major challenges to investment in securities in Nigeria was the dearth of data, which revealed risk factors of quoted companies in Nigeria.
Omolehinwa explained that the inability to identify the major risk factors was a major impediment to investment in the quoted companies in Nigeria.
He said, “In developed economies, a potential investor can easily buy data of a quoted company and identify its risk factors as a basis for decision to invest hugely in such a company.
“Comprehensive data analysis to show risk factors of a company is lacking in
Nigeria, although few companies that are rating agencies do a little bit of such.
“Once the risk factors of a company are identified, it becomes easier to analyse the stream of expected return and required return from the company. These are important data for investment decision and we expect our stockbrokers to develop capacity in this area.”
A Past President of the Institute, Mr Mike Itegboje, while speaking on the overview of the financial markets and institutions, explained that relevant information on the quoted companies would attract informed retail investors, institutional and foreign ones into the market.
According to him, the Executive Conversion Programme is designed to raise the bar of human capital in the securities industry.
The Institute’s Second Vice -President, Mr Oluwole Adeosun, urged the participants to attend the institute’s continuing professional development programme in order to keep tab on the development in the market on regular basis.
He said the institute initiated the conversion programme to support the capital market through research and analysis of data The Deputy Vicechancellor, Adeleke University, Ede, Prof. Solomon Adebola, said the programme would spur his colleagues to collaborate with the CIS in the area of data analysis and encourage students to develop interest in the financial market.