stock market crashing

[Vanessa]

Now that the stock market is experincing a bearish period, we all know that this is the best time to invest. I am however unsure of the best sector to invest in. Please can anyone recomend the best sector to invest in now, apartt from Banking and insurance sectors.

[BLUEMONEY]

Originally Posted by Vanessa

Now that the stock market is experincing a bearish period, we all know that this is the best time to invest. I am however unsure of the best sector to invest in. Please can anyone recomend the best sector to invest in now, apartt from Banking and insurance sectors.

we dont know what your investment goals are & will not be very O.K to just recommend a company. so what class of investor are you ????? short, medium or long term ????? CHEERS.

[bwalaman]

Over the years, the NSE has dipped in March…but this time it went through April. Ok, probably the change in government and new budget has a huge role to play in this (note new government is different from 2nd term government).

Ok, the market might remain depressed because everyone that has a PLC or LTD is going for IPO, PO or RI these days,. Granted, profiting taking to take positions in these IPOs, Pos, and LTD will be an issue

Common, as long as careful investment returns more than 15 percent across the board, the crash bell is too too too early to ring- it is a buy opportunity.

This said, the time horizon is important, but the caveat is that the NSE timeline is more IMMEDIATE TERM (less than 6 months), SHORT TERM (6- 12) and the rest… The NSE has spoilt us.

The profit curve is shortening; forget about the sector performance we saw in the Banking over the last 2 years… The banking sector performance has already been factored into the market psychic.

Do not expect an almost wholesale sector increase, but expect individual stock to do very well. So instead of sounding the crash bell, invest wisely.

[riskreturn]

Originally Posted by Vanessa

Now that the stock market is experincing a bearish period, we all know that this is the best time to invest. I am however unsure of the best sector to invest in. Please can anyone recomend the best sector to invest in now, apartt from Banking and insurance sectors.

Outside the banking sector, you may wish to try brewery (specifically, Nigeria Brewery and/or Guinness). Dangote Sugar and WAPCO too should be okay. But, in all cases you may wish to adopt a time horizon of about 9 months. Having said the above, banking stocks (which you have seemingly ruled out) still appear to be the cheapest, currently.

[knightofdelta]

Originally Posted by riskreturn

Outside the banking sector, you may wish to try brewery (specifically, Nigeria Brewery and/or Guinness). Dangote Sugar and WAPCO too should be okay. But, in all cases you may wish to adopt a time horizon of about 9 months. Having said the above, banking stocks (which you have seemingly ruled out) still appear to be the cheapest, currently.

My sentiments exactly.

[solainvest]

I read through the comments made by the MD of spring bank below

'Withdrawing Margin Facilities 'll Slow Down Stock Market' | Financialnigeria.com

It rekindled my interest on the effect of the margin facility withdrawal by banks. Reading through and doing some thinking, it seems most if not all of the stocks on the exchange are not fairly priced.

There might be a massive correction in the offing if the CBN goes ahead with the policy.

My earlier comments on stocks been fairly priced is made on the back of a paper posted yesterday by Newton (by JP Morgan). It seems our stock market does not price certain risks.

Comments/ contributions are welcome.

[XXCASH]

Equity Market

In 19,411 transactions, investors exchanged 2.03bn shares worth N23.78bn. Interestingly, volumes increased by 369.9%, while value rose by 231.7%. The increased level of activity may not be unconnected with recent policy adjustments by the Central Bank of Nigeria (CBN). Moreso is the expectation that Banks may begin to call up margin loans as their capacity to provide credit has been limited by the increase in Cash Reserve Ratio to 4%. This may exert some pressure on the equity market as the banks attempt to reduce their exposure to the market. We continue to watch how events unfold

Quote above from proshare. See line 4
Please fasten your seatbelts