‘Outcome of general elections will determine FX direction’

• Parthian lists stocks to watch this year

Head of Investment Research at Parthian Securities Limited, Oluwaseun Dosunmu, yesterday, said the forthcoming elections would ultimately determine the next direction of the foreign exchange (FX) market.

Speaking at his company’s investor’s guide held virtually, Dosunmu said the elections, which would lead to a change in the country’s political leadership, are a big deal on how both foreign and local investors would respond to the country’s investment market.

He expected getting the FX management right to be a priority on the next administration’s to-do lists, noting that a favourable model and peaceful election would get foreign investors trooping into the country.

In the face of growing uncertainty, Dosunmu said “this is the right time to buy stocks” as many investors would return to the market after the February presidential election, thus pumping the prices of equities.

In addition to a credible and fair election, he listed low-interest rates, new listing/capital market reforms and strong corporate earnings as some of the factors that would drive market performance in the year.

On the downside, he said, continued monetary tightening, poor earnings, election violence and poor earnings of listed equities could trigger a negative outing.

The investment banker projected a continuous but slower monetary tightening and bullish oil prices, adding that some of the issues that defined economic performance last year would continue in the year but with some moderation.

Last year, Airtel and Seplat led the performance of the Nigeria equities with 71.2 per cent and 69.2 per cent returns respectively. The dual-listed equities were followed by BUA Foods, Bua cement and newly-listed Geregu Power.

Dosunmu picked Airtel and Seplat again as stocks to watch this year. Others include MTN, Zenith Bank, UBA, Nestle Dangote Cement and Lafarge. Nigerian Breweries and Total Energies are also on the list.

Chief Operating Officer of I-invest, an investment app of Parthian Group, Tobi Olusoga, charged investors to consider flexibility and diversification in the management of their portfolio.

She said I-invest would help investors to achieve their investment objectives on the go.

With the app, she said, investors could place an order even outside trading hours just as the tool gives them access to both local and global investment markets.