Investors have been urged by an investment banking firm known as Comercio Partners to exercise caution and concentrate on the industries that will power the economy in the second half of the year.
This was made clear in the company’s analysis of the first half of the year’s economy and the second half’s projection.
“The first half of this year has been an exhilarating ride, featuring a blend of bullish and bearish sentiments in the fixed income markets,” said the co-Managing Partner of the business, Steve Osho, while reviewing the first half of the year.
“The Nigerian stock market proved its toughness by enduring macroeconomic difficulties and election-related jitters, rocketing to its highest index point in 16 years at 66,381.20, which made the NGX the best performing in Sub-Saharan Africa.”
Osho predicted the economic trajectory for the second half, stating that it would depend on the ministerial selections made by President Bola Tinubu as well as the ensuing monetary and fiscal policies.
“In the second half of the year, it will be crucial to see whether the elimination of fuel subsidies is sustainable and whether the foreign exchange market has been liberalized.”
He stated that along with this, it becomes an interesting issue to discuss raising the minimum salary from N30,000 to N200,000 so that Nigerians can bear the weight of the economic reforms.
Osho predicted that the financial markets will continue to function well with more participation from overseas portfolio investors.
“Although yields are anticipated to trend upward to attract foreign portfolio investments, investors may develop cautious attitudes as the year goes on as they closely monitor their participation.
“For the local stock market, we anticipate a sustained upward trajectory in the benchmark All-Share Index, driven by investor expectation of outstanding financial performance from banks following the unification of foreign exchange rates,” said the report.
Osho stated that because of the weak macroeconomic climate, it is crucial for investors to have a cautious attitude and to only invest in fundamentally sound firms.
“Market players should place a high priority on creating strong investing plans, doing extensive research, and diversifying their portfolios.
“Investors may expertly navigate potential dangers and grab exciting possibilities by being informed about market developments and obtaining professional help.”
