In­suf­fi­cient data hin­der­ing in­vest­ment in quoted com­pa­nies

The Punch - - CAPITAL MARKET - Fey­isayo Popoola

― Ex­perts

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.

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