Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Markets Equities

Stock market: Analysts see positive sentiment despite headwinds

Chris UgwubyChris Ugwu
3 weeks ago
in Equities, Markets, Stock Market
The stock market closes negative as investors loss N37 billion
Share on FacebookShare on TwitterShare on Linkedin

Analysts at Investment One Research have projected that the positive momentum recorded in the past three years on the NGX will be sustained in 2023, albeit at a moderate pace. 

The analysts stated this in their 2023 microcosmic and financial market outlook report tagged ‘Unboxing the New Realities’.

Expected bullish sentiment: They noted that a major catalyzing factor is a bullish sentiment expected in Q1 to be buoyed by investors positioning ahead of 2022 full-year corporate disclosures and possible re-investment of dividends earned.

The analysts added that another eventful factor that should buoy sentiments in the market was Dangote Cement Plc’s share buyback of up to 1,687,355,925 (10%) of its issued shares which has been unanimously approved by the shareholders at the last Extra-ordinary General Meeting (EGM) held in December 2022.

Performance determinant: They explained that further into the year, the direction of market performance will be largely determined by the trio impact of fixed income yields in tandem with monetary policy, corporate actions, and election turnouts. They said:

  • “Ditto to our outlook of tepid movement in yields in the fixed income space and expectations of a less aggressive hawkish tone from the CBN, negative real returns should remain relatively high in the fixed income space giving room for alpha-seeking investors diverting more funds to equities as it remains a solid channel for positive real returns. 
  • For Corporate earnings, we are cautiously optimistic about a positive earnings performance in 2023 given the negative impact of high inflation pressures, increased monetary policy tightening and FX instability. 
  • Although we expect a broad-based resilient performance, we do not see a significantly upbeat performance as the aforementioned factors remain deterrents.”

The downside risks: The analysts noted that election jitters and heightened political risk in 2023 are key factors that will influence investors’ sentiments towards the equities market, particularly considering that it is an election that would herald a change of the presidential baton.

  • “Considering the “do or die” nature of election affairs in Nigeria and the instability that comes with policy enactments and reforms as well as the uncertainty of a peaceful post-election season, equity investors tend to take a standoffish position towards the market as they take a flight to safe havens. 
  • “We highlight that the last three election years ended on a negative note for the market (2019: -14.60%, 2015: -17.36% and 2011: -16.31%) owing to the significant participation of foreign investors and the negative sentiments exhibited towards election seasons as propelled by the aforementioned factors.
  • “It is worthy of note that foreign investors’ participation in the local bourse was quite significant over these periods, printing at 49.00%, 54.00% and 66.00% for 2019, 2015, and 2011, respectively, while as of November 2022, foreign investors only constitute 17.00% of total market participation. 
  • “For us, we think the change in structure with respect to investor participation will bode well for market performance, mitigating any significant potential downside risk from the electioneering process. 
  • “Post-election, barring any heated tensions from the election with respect to who clinches the presidential seat, we expect to see a positive turnout in the bourse on the back of our opinion of the three major candidates being pro-market.”

 

Related

Tags: stock market

Leave a Reply Cancel reply

HFM
Mega Millions
Mega Millions
Patricia





NM newsletters

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • Naira, fuel scarcity: Lagos announces 50% transport fare reduction on BRT buses, LAGRIDE, others, sets up Food bank 
  • Girl Child: Nurturing Our Women, Nigeria’s Own Wealth
  • Nigeria investing heavily in food, packaging and plastics technology

Follow us on social media:

Recent News

Naira, fuel scarcity: Lagos announces 50% transport fare reduction for BRT, LAGRIDE, others, sets up Food bank

Naira, fuel scarcity: Lagos announces 50% transport fare reduction on BRT buses, LAGRIDE, others, sets up Food bank 

February 8, 2023
GIrl child

Girl Child: Nurturing Our Women, Nigeria’s Own Wealth

February 8, 2023
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Lifestyle
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds

© 2023 Nairametrics