Cordros Capital Research in their latest release posited that the outlook for Nigerian equities remains positive, supported by improving macroeconomic conditions and still-positive market fundamentals.
They are however tipping that stocks like Access Bank plc,UCAP ,Flourmill ,UBA Plc and Fo among others have the potentials to perform very well for investors of the market on the near future.
Going further, the release declared “We expect the overnight lending rate to close higher in the coming month, as outflows from the CBN’s frequent OMO auction and FX sales will likely outweigh inflows from maturing OMO bills (valued at NGN235.51 billion) and budgetary allocations to state and local governments.
“Buying momentum in the NTB primary market is expected to remain strong, as investors continue to take cues from improving inflationary conditions, imminent monetary easing, and buoyant activities from the offshore community. The apex bank’s frequent OMO auctions remains the key upside risk.”
Its position as regards the bond market favours lower yields, as expected monetary easing, improving inflationary conditions, and the FGN’s new debt management strategy will remain key drivers of yield movement in the near-to-medium term,adding that its likely that naira will remains stable, and continues to trade within the current band, as oil revenues (amidst stable oil production and rising oil prices) continue to support accretion to the reserves, and strengthens the CBN’s intervention in the FX market.