Some capital market participants believe that the 2024 Appropriation Bill’s substantial dependence on the private sector for development projects will fuel a bullish run in the stock market.
According to The PUNCH, this was revealed in exclusive interviews as stakeholders make predictions for the coming year.
Analysts’ Data Services and Resources, a data and research firm, stated in its Budgeting For The Citizens report issued in December that while the country strives to increase efficiency in its public spending, there is a need to attract more private money.
According to the report, “As Nigeria strives to improve its public spending efficiency, it must also attract and retain private capital, both domestic and foreign, particularly in sectors with high impacts on its citizens’ welfare.”
The Chief Executive Officer of Wyoming Capital & Partners, Tajudeen Olayinka, stated in his remarks that the market’s bullish run in 2023 began in 2022 and is expected to continue in the new year.
“We saw a market that decided on 2023 as early as November 2022, when it was clear that the three main presidential contenders, namely Asiwaju Bola Ahmed Tinubu, Peter Obi, and Alhaji Atiku Abubakar, who may succeed former President Muhammadu Buhari, were pro-market. As a result, the buildup to the bullish run in 2023, was a sign of market confidence in a president centered on the private sector.”
On projections for the year, the stockbroker of many years standing said that the new year will be a positive one for the Nigerian stock market.
Cowry Asset Management researchers predicted that investors will be expecting good policy reforms from economic drivers ahead of the first trading week of the new year.
“Cowry Research anticipates widespread optimism as investors prepare for the new year through sectoral portfolio rebalancing. With the January impact in action, investors are anticipated to take profits and look for bargains in dividend-paying equities as earnings season approaches.
“Strategic reallocation of funds among sectors and portfolio adjustments to align with changing market conditions are likely to shape trading activities, reflecting investors’ pursuit of optimal risk-return profiles and capitalizing on emerging opportunities,” according to a section of their weekly report.
