Communique at the end of a one-day workshop for the stakeholders in the Nigerian capital market with the theme ‘‘May 2015 and Beyond: Equity Investment Made Easy’’

1.The workshoporganised by INVEST DATA CONSULTING LIMITED Drew participants from across the country. Papers on various issues affecting the market and the economic were presented at the workshop by Seasoned Professionals and Stock Market Experts including

The Managing Director of APT Securities and Fund Limited (ALHAJI KASIMU GARUBA KURFI). The Managing Director of Data Trust Consulting Limited and publisher of Stock Market Guide (MR MIKEUZOR). The Head of Capital Market TRW Stockbroker Limited (MR ABDUL RASHEED), represented by MrTaiwoMegbopeand the Chief Research Officer of InvestDataConsulting limited 

(MR AMBROSE OMORDION)

1. The resource persons discussed Nigeria's post-election economy as this would affect investment. They also shed light on other issues such as strategies for better returns in the market, managing risk, sectorial analysis, application of technical analysis in equity trading and approaches to choosing quality companies toinvest in, among others.

2. In his paper, the Managing Director of Data Trust Consulting Limited, Mr.MikeUzor, noted that Nigeria's post-election economy requires a major stimulatory policy framework to set in motion a curative turnaround process for the nation's industrial sector to operate optimally.

3. On his part, the Managing Director of APT Securities and Fund Limited, AlhajiKasimuKurfi, highlighted the importance of adopting a new strategy in the new dispensation, as economic policies would drive some key sectors. He said the main pillars of investment strategies for better returns in the market to include, asset allocation, diversification and balance between reward and risk. He underscored the need for investors and traders to understand basic investment data, financial reports, earning yields and market timing among other factors that could help them identify opportunities and take positions for success.

4. In his contribution, the Chief Research Officer of Invest Data Consulting Limited and organiser of the workshop, Mr. Ambrose Omordion, said much is not expected to change in the new political dispensation as the economic structure would likely remain the same. Speaking on the post-electioneconomy and five time tested approaches to choosing quality companies for investment in the Nigerian stock exchange, he however noted that reforms and commitment to drive the change concept of the incoming government should give investors and listed companies positive expectations as the government rolls out policies and strategies to reposition the economy. He expects many new windows of opportunity that would attract capital inflows, as a new market springs up for local and international investors. He also said that after identifying a quality company you need technical analysis to know the right price to buy and sell.

Mr.Omordion, also expect the new administration to continue with the ongoing economic diversification programme, to create new sources of revenue for government to deliver on their campaign promises of improving the living conditions of the citizens. He urged the investing public to utilise the opportunities that would be created by the transition in government for investors to grow their portfolios and recoup past losses. He decried the current situation whereby the country's revenue streams are dwindling, leaving the government with limited options as regards implementation of major stimulatory policies required to recover the lost momentum.Uzor however called for a monetary policy solution, by way of cutting interest rate to empower both producers and consumers in the country.

5. Speaking on the topic: "Managing risk of when to buy or sell stocks using technical analysis,"MrTaiwoMegbope urged investors and traders to always define the purpose of their investment to help them assess the inherent  risk and potential rewards, as well as which stocks to buy and the proper time to do so. He recommended the use of effective technical tools such as RSI, MACD and volume for analysis.

Post-election economic recovery: Policy environment for rebuilding lost momentum

§  The economy needs critical actions to be taken in two fronts- dealing with the effect of the decline and activating the forces of a new growth.

§  We discover that it is far easier for an economy to lose growth momentum than regain or accelerate it, because a good part of capital has left the Nigerian economy for safety elsewhere. This is not going to return, at least, for a while and many businesses have shutdown, or at best, scaled down their operations during the decline.

§  Economic policies work more effectively and much faster if they are preventive, rather than curative. It takes a lot of curative policies to correct than prevent.

§  The various stimulatory packages that governments around the world applied to deal with the 2007/2008 financial crisis followed the preventive approach.

§  To ensure that industrial engines keep running and men are retained on their jobs is the reason why the US is yet to end its monetary policy easing.

§  The British government took the same step by providing banks with new money at very low interest rates to keep up the production and consumption functions.

§  An injury on the economy, like one on the human body, may heal by itself if untreated, but if it does, it sets the economy well below its previous operating capacity and momentum.

§  A monetary policy solution however appears appropriate by way of cutting interest rates to empower both producers and consumers.

§  The economy has suffered a lot of interest rate shocks since the last financial crisis and it has become necessary to retrace the steps.

§  The ability to consume what our industries and businesses produce has dropped and this has serious implications for sales revenue growth of companies.

§  Policy makers are looking at macroeconomic numbers, there is a grass-roots deterioration of consumer capacity, which is the critical factor for corporate performance.

Investors looking at Nigeria as investment destination are in the right direction as huge potentials unfold in the new dispensation.

Ambrose Omordion

Chief Research Officer

Investdata Consulting Limited.