Nigerian economy to rebound in 2nd quarter

Some financial experts have expressed optimism that there would be increased liquidity in the capital market in the second quarter of this year.
They told the News Agency of Nigeria (NAN) in Lagos on Wednesday that the sustained economic recovery measures of the Federal Government would impact positively on the market this quarter.
Dr Uche Uwaleke, the Head of Banking and Finance Department in Nasarawa State University, Keffi, said that the market would witness enhanced liquidity during the period with the 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 percent. 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.
Mr Sewa Wusu, the Head of Research at SCM Capital, said that investors were still exhibiting negative sentiments because of the current poor macroeconomic environment in the country.
Wusu said that the market outlook looked positive in the second quarter in view of the recent economic recovery measures of government.
He said that the economic environment was steadily responding to the 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 the market begins to respond in the near term.
“Consequently, I see a positive outlook hinged on the economic recovery measures,” Wusu said.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData in Lagos, 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 the market direction in the quarter.
He said that the positive figures for March Purchasing Managers Index (PMI) and the Gross Domestic Product (GDP) confirmed that the economy was on the path of recovery and this could drive activities in the market.
Source: News Agency of Nigeria (NAN).