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Investments pundits predict Nigeria’s economy rebound at second quarter

Minister of Finance, Kemi Adeosun

By Newsdesk

Stakeholders and investment pundits on Wednesday  have foretold growth and overall economic rebound in the second quarter, when the federal government economic recovery plan is expected to make impact.

The analysts, in a chat with a news agency, emphasised that  sustained economic recovery measures of the Federal Government would impact positively on the market this quarter,

Leading the separate stakeholders,  the Head of Banking and Finance Department in Nasarawa State University, Keffi, Dr Uche Uwaleke, said that market would witness enhanced liquidity during the period with appreciation of the naira.

Uwaleke said that the lower inflation rate and the expected passage of the 2017 budget would also help to boost liquidity in the stock market.

“For the equities market, the year-to-date return currently stands at a negative of 5.96 per cent. However, for the second quarter of 2017, I expect a positive turnaround in the fortunes of the stock market, ” he said.

Uwaleke said that that the financial performance of many listed firms would improve, noting that of 25 companies that had released their audited financial results, 13 reported increased earnings.

Speaking in the same vein, the Head of Research at SCM Capital, Sewa Wusu, said that investors were still exhibiting negative sentiments because of current poor macroeconomic environment in the country.

Wusu said that market outlook looked positive in second quarter in view of the recent economic recovery measures of government, adding that the economic environment was steadily responding to current economic recovery measures.

“What this means is that risk tolerant investors should seize the current low value of stocks to position themselves ahead as market begins to respond in the near term.Consequently, I see a positive outlook hinged on the economic recovery measures,” Wusu said.
In his submission, the Chief Operating Officer, InvestData in Lagos, Ambrose Omordion, however, said that the future market outlook was still uncertain.

Omordion said that global economic uncertainties arising from the fiscal and monetary decisions would dictate market direction in the quarter.

He added that positive figures for March Purchasing Managers Index  (PMI) and Gross Domestic Product (GDP) which confirmed that the economy was on the path of recovery  and that could drive activities in the market.

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