The Nigerian Stock Exchange(NSE)CEO,Oscar Onyema has said that the economy this year will naturally experience some instability until after the general elections scheduled to run for the next two months.
He said the capital market,especially the equity market, is expected to encounter some volatility in the first quarter of the year because of uncertainty in international oil prices and the general elections.
Speaking in a crowded press conference graced by who is who in the capital market ,Onyema maintained that “we believe swift approval and implementation of the 2019 budget may have a positive impact on companies’ earnings as well as consumer spending.
Therefore ,we anticipate a return of listings during the year with an uptick in marketing activity during the second half of 2019,”he said
He stated that IMF projects that Nigeria will grow by 2.3% this year.The highest IMF has projected for the country over the last three years.
Some experts however stated that this being and election year that budget implementation is not likely to be swift nor the approval as many law makers would be involved in the election campaigns.
The market capitalization moved from N9.10Tn in 2017 to N10.17Tn in 2018 while the turnover spiraled from N775.78 Bn of previous year to N949.07Bn last year.Foreign investor participation in the period was 50.87% whereas Domestic shareholders averaged 49.13%