Omodele Adigun and Chinwendu Obienyi
FBN Holdings (FBNH) Plc has stressed the need for retail investors to invest in companies with strong fundamentals, sustainable growth and profitability to ensure enhanced returns on investment.
Its Head, Investor Relations, Mr Tolulope Olugbenro Oluwole, stated this at the Capital Market Correspondents Association of Nigeria (CAMCAN) virtual forum Wednesday in Lagos.
According to him, retail investors should go beyond speculation and invest in stocks with strong fundamentals, sound management and potentials for growth. He said the COVID-19 pandemic and downturn in the stock market provide an opportunity for investors.
According to him, understanding to invest in good companies such as FBNH is key at this time for investors not to have their fingers burnt again.
Oluwole noted that there was an opportunity in any market downturn, urging investors to key into the present opportunities in the equities market.
“At this time of economic challenge, we have seen an increase in the domestic retail and institutional investors participation in the market,” he stated.
On the exit of foreign investors, Oluwole said they would soon find their way back to the market in a matter of time with strong business fundamentals.
In his presentation titled, ‘Financial media and engagement with Retail Investors’, he said there were a number of different investors with varied levels of interest in a company’s investment story. He noted that while the majority of the audience have broadly similar requirements, there are subtle differences and it is critically important to ensure consistency in the messages to avoid misinterpretation. He described retail investors as non-professional market participants who generally invest smaller amounts than larger institutional investors.
He also noted that individual investors were thought to be less knowledgeable, less disciplined, less skillful, and prone to behavioral and emotional decisions, saying that despite their lack of knowledge, the retail investment space was enormous with individuals.