Capital market analysts have expressed optimism that the Nigerian capital market and the economy would experience increased activities with innovative macroeconomic policy in 2017.
The Nigerian stock market recorded a decline of 6.2 per cent in 2016 as the index posted a loss for the third consecutive year on the back of weaker domestic macroeconomic fundamentals and high discount rate which pressured earnings of companies and also weighed on investor sentiment.
Speaking on the capital market outlook for 2017, Mr David Adonr, managing director, Highcap Securities Limited, said: “We expect that 2017 will be a better year for the capital market with new listings and renewed interest from Foreign Portfolio Investors who are already looking at opportunities in emerging markets as a result of the spate of uncertain political climate in both the UK (BREXIT) and the US (Trump Presidency). Also the new oil deal is expected to see crude oil prices rise significantly from current levels.
“We also expect some pass through effect of intervention policies by the Federal Government in the local economy to manifest in 2017. Overall, we are optimistic that 2017 will be a better year for the economy.
“We are hopeful that 2017 will usher in improvements in most of these macroeconomic indicators. These will of course rub off on the stock market. As oil prices rise we are going to see improvement in our economic activities and of course our Reserves. Also “I foresee quality improvement in our non-oil exports next year, which will have positive impact on our economy.”
The chief executive officerof Espera Global Corporation, Prince-Abbi said innovative macroeconomic policy making with strong strategic insight would provide the platform and delivery system to improve economic activities, including the capital market.
He expressed optimism that there would be improvement at the federal government level in 2017 going by the various fiscal policy measures being articulated to stimulate the economy.
He also said Nigeria’s foreign reserves would likely improve in 2017 with sustained stability in crude oil production output and through a progressively diversified export revenue structure.
“Along with this, the real sector performance will improve, productivity growth will register and the GDP growth will rise,’’ he said.
He observed that the federal government’s planned investments in infrastructure would further stimulate this process and open up relatively new growth pathways.
On how to sustain the capital market, he urged the operators and investors to look more at the medium and long-term investment windows rather than being caught by the syndrome of short-term speculative actions, explaining that short-term speculative actions could harm the market and do nobody any good.
Source: NaijaMotherland.com