ANALYSTS PROJECTS CAPITAL MARKET REBOUND
The news article discusses the outlook for Nigeria's capital market, with financial analysts projecting a rebound in both foreign and domestic investments. The anticipated growth is linked to recent government policy reforms that have improved investor sentiment. Analysts believe that a stable economic environment will drive more robust participation from investors, both local and foreign.
However, challenges such as inflation, interest rates, and foreign exchange (FX) volatility remain significant hurdles. These factors must be addressed for sustained growth in the market.
Bisi Bakare, the National Coordinator of the Pragmatic Shareholders Association of Nigeria, suggested that the perceived decline in market transactions is a temporary realignment of investor appetite. She highlighted that recent government initiatives, including bank recapitalization, have begun to stimulate market activities, and this trend is expected to continue.
The article also notes that the Nigerian stock market recorded a total domestic transaction value of NGN 2.5 trillion in the first half of the year, reflecting a growing dominance of local investors over foreign ones.
Another financial analyst, Rotimi Fakeyejo, echoed the positive outlook but warned that the resurgence in capital inflows might be short-lived if key economic challenges, such as FX volatility and high inflation, remain unresolved. He also pointed out that high borrowing costs and expensive raw material imports are squeezing company margins, which may deter local investors from fully participating in the market.
Despite these concerns, both analysts believe there are still opportunities in the primary market, especially with ongoing bank recapitalization efforts.
This news underscores the cautious optimism among financial experts regarding Nigeria's capital market, while also acknowledging the need for continued economic stability to sustain growth.
The news article discusses the outlook for Nigeria's capital market, with financial analysts projecting a rebound in both foreign and domestic investments. The anticipated growth is linked to recent government policy reforms that have improved investor sentiment. Analysts believe that a stable economic environment will drive more robust participation from investors, both local and foreign.
However, challenges such as inflation, interest rates, and foreign exchange (FX) volatility remain significant hurdles. These factors must be addressed for sustained growth in the market.
Bisi Bakare, the National Coordinator of the Pragmatic Shareholders Association of Nigeria, suggested that the perceived decline in market transactions is a temporary realignment of investor appetite. She highlighted that recent government initiatives, including bank recapitalization, have begun to stimulate market activities, and this trend is expected to continue.
The article also notes that the Nigerian stock market recorded a total domestic transaction value of NGN 2.5 trillion in the first half of the year, reflecting a growing dominance of local investors over foreign ones.
Another financial analyst, Rotimi Fakeyejo, echoed the positive outlook but warned that the resurgence in capital inflows might be short-lived if key economic challenges, such as FX volatility and high inflation, remain unresolved. He also pointed out that high borrowing costs and expensive raw material imports are squeezing company margins, which may deter local investors from fully participating in the market.
Despite these concerns, both analysts believe there are still opportunities in the primary market, especially with ongoing bank recapitalization efforts.
This news underscores the cautious optimism among financial experts regarding Nigeria's capital market, while also acknowledging the need for continued economic stability to sustain growth.