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FBNQuest identifies sectors that will benefit from lockdown exercise

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Amid the coronavirus pandemic, FBNQuest Research has identified organisations that would emerge from the crisis stronger at the end of the lockdown exercise.

According to the research carried out by FBNQuest, mobile telephony in Nigeria including MTN Nigeria Communications Plc and Airtel Africa Plc are favoured and are on the winning end, while Amazon in the United Kingdom has also proved to be reliable as well.

In an interview with the Head, Macroeconomics and Fixed Income Research, FBNQuest, Gregory Kronsten, said: “As we sit at home under varying degrees of lockdowns, companies offering delivery services deliver the orders that some of Nigerian would previously have fulfilled by visiting stores. Mobile telephony is another winner as we are obliged to make use of conference calls and video conferencing for routine conversations with colleagues and clients that we often held face-to-face in the office.

“The handful of United States corporations capitalised at more than $100 billion (led by Alphabet, Amazon, Apple, and Facebook) are set to grow in influence and reach. It will be more difficult for governments to rein them in on the grounds of their perceived monopolistic practices or poor conduct such as failing to close down a terrorist or socially harmful sites”.

Further, into the forecast, the banking sector will also emerge strong after the coronavirus pandemic ends.

“E-banking has received a boost from people being confined to many homes. The loser is likely to be cash transactions for health reasons and for practicality. We may well maintain the habit of paying for goods and services by card.

The Central Bank of Nigeria’s (CBN) cash-lite and financial inclusion programs appear healthier in this light.”

FBN Quest added: “Governments of oil producers have to adjust with fiscal retrenchment too, Nigeria being one of many examples. Developed countries may be tempted to adjust but have signed treaties and made policy pledges in the name of renewables.

The cost of filling up the tank has nosedived where pricing is set by the market. Those segments of the airline industry that survive will feel that, once government closures of airports are lifted, they will be able to rebuild their businesses,” it said.

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FBNQuestGregory Kronsten
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