Experts predict growth for capital market in Q2
CAPITAL market operators have expressed optimism that the equities market would witness robust activities, with a potential rise in both index and market capitalization, which would ultimately result to an increase in return on investment across all the sectors in the second quarter (Q2).
According to them, there are high expectations that the All-share index would record significant improvement because the electioneering activities have been concluded by the first quarter.
Besides, the anticipations of a peaceful transition and takeover of affairs by General Muhammed Buhari as the President of Nigeria would be responsible for the record performance of the stock market as it is expected to greatly boost investors’ confidence.
Although, activities of politicians during the just concluded elections affected the entire capital market growth and development with the predicaments and challenges occasioned by the 2015 general election felt within the 1st quarter .
NSE market capitalization as at Dec. 2014, closed at N 11.49 trillion from the N13.20 trillion in the corresponding period of 2013.
The decrease of N1.71 trillion represented 12.95 per cent decrease already.
They, however, added that the uncertainties surrounding the elections which made several investors to exit the market in the firstquarter and caused others to trade cautiously, had been removed.
Specifically, the Managing Partner of the Limited Chineyem Anyanwu , said that the uncertainties surrounding the 2015 general elections had slowed down, noting that the peaceful take over would boost investors’ confidence in the equities market.
The Managing Director Topmost Securities Ltd. Gbenga Obissesan, said there was need for strong Nigerian investors’ participation in the Nigerian Stock to enhance stability Market and development of the economy.
Obisesan explained that the market and the economy would be stable through stronger participation of domestic investors.
“Our economy like most global markets is sensitive to global market global development, but if we have a strong participation by domestic investors in our economy, it will help to our economy much more stable.” Obisesan said.
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