Wole Olajide
The outbreak of Covid-19 pandemic brought about innovations and changes in the way businesses are run globally. There is a saying that necessity is the mother of invention. Companies with technological infrastructure stand the chance to survive as most businesses now operate remotely.
Investors, going forward should look at the entities that are going to survive the post covid-19 business order.
According to Bright Otoghile, Managing Director, Gruene Capital Limited, “The post covid-19 business order will largely deviate from the traditional business order we have had in last decades. So the things we should be looking out for will be those things or factors that are likely to shape the post covid-19 business order and how the human phase respond to it. So if we look into the market, you ask yourself which of the listed companies is more likely to actually take the gain or have the competitive advantage in this post covid-19 business order.”
‘’Before now, the BANKING SECTOR was actually leading in using technology to drive their business. So they are more likely to be in the forefront of the post covid-19 business order. If so, then the question will now be; which among this banking entities have a cutting edge technology infrastructure to out-do its competitors?”
Mr Aruna Kebira, Chief Dealer of Global View Capital Limited in a recent interview strongly recommended BANKING STOCKS. According to him the banking sector are better positioned in the post Covid-19 era to yield good returns far more than the manufacturing sector.
According to him: ‘’You can give banking services remotely. People can do transfer, they do whatever they can with their phone via internet banking; go to the ATM and collect cash.
‘’You cannot manufacture remotely, somebody has to be there. Even in automated processes, you still need human interphase to make it work. A number of people are looking at that factor. By the time the manufacturing company begin to release their result for second quarter, it will be very dismal compared to the previous quarter in 2019. And you know the market normally react negatively to things like that.
‘’Banking stocks on the other hand, even if there is going to be a drop in earnings, it might not be as much as it would be for manufacturing companies.’’