A capital market analyst
and one time investment manager, Consolidated Insurance, Tonye Owei has called for Stock Market investors to consider investing in stocks with little or no exposure to foreign exchange (Forex).
Owei gave this advise in a telephone chat with The Tide yesterday in Port Harcourt.
He said with the current economic downturn in the country and the scarcity of forex, it will be more beneficial and profitable if investors invested in service stocks.
He said, “Stock market investors should invest in companies, which provide essential services with less forex exposure”.
The stock market analyst further said, stocks of agro and food companies do not require much forex, stressing that investing in agro produce and household goods stocks could also help to generate quick income from sales.
Furthermore, he advised that investors could take advantage of companies that have potentials of benefiting from the new economic policies on diversification, saying, “buying stocks of such companies would ensure good returns in the short and long-term, and I want to add investors should take advantage of the lull in the stock market and increase their participation, because the current challenges facing the market will end soon”.
He was optimistic that the state of the nation’s economy would soon stabilize.