Post by Ismail AbdulAzeez on Oct 1, 2017 11:47:22 GMT 1
For quite some time, we have witnessed what is going on in the export markets both locally and internationally. We all noticed that our export market has reached a turning point, in the sense that most of our agricultural commodities are now suitable for overseas market. So, we advise investors and exporters to begin to take position now, because, we believe any time from now the market would bounce back. And the problem of the market is that once it gets back, you will see that the sellers may no longer want to sell and the buyers will keep on pursuing the small quantity that may not be available most of the time. So, we advise investors that if they have extra money, this is the time to invest in stock-pilling of exportable commodities.
In the words of Mr. Ismail AbdulAzees, CEO, The Thy Global Investment Limited, he once said that for you to make good money from export business, you should enter market in such a time like now. Because this is the time most of the commodities have reached the down level, the turning point. Not only that, the world over, including here locally, you will see that efforts are being made by governments, the regulatory authorities, all putting heads together to see that they do everything possible to turn around the commodity export market. For instance, the recent reduction in cash requirement from the banks, the reduction in MRR (Minimum Rediscount Rate) and the suggestion to the banks that they should restructure their loans on margin accounts. Most of the commodity export investors are still looking at the Nigerian export market especially now that the prices are low. Don't forget that among all emerging market, Nigeria is the only market where, even though, it goes down to some level, it has not suffered anything in terms of foreign exchange. At some point, South Africa’s foreign reserve came down by over 40 per cent. Same thing applies to India.
Though, we are not saying Nigeria is totally unaffected by what is happening elsewhere, but the problem of our market is that of lack of confidence, which people developed over a time. But the truth of the matter is that, wise and intelligent investors should take position in Nigerian market now, because this is the time one, the price has gone down, which means if you invest your money in export business now, you can recoup it in less than one year. And this is what is hard to get in other jurisdictions. This is an indicator that ours is not that bad. Investors should put their money now before they start lamenting. Once the commodities begins to bounce back it will be difficult to get the required profits.
Investors should also know that the regulators are working hard to see that our export market rebounds soon. Begin to take position now.